Rates on US Treasury bills drop at weekly auction

WASHINGTON (AP) " Interest rates on short-term Treasury bills fell in Monday's auction, with rates on three-month bills dropping to their lowest level since early December.

The Treasury Department auctioned $34 billion in three-month bills at a discount rate of 0.505 percent, down from 0.530 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.600 percent, down from 0.605 percent last week.

The three-month rate was the lowest since those bills averaged 0.490 percent on Dec. 5. The six-month rate was the lowest since those bills averaged 0.590 percent on Jan. 9.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,987.23, while a six-month bill sold for $9,969.67. That would equal an annualized rate of 0.513 percent for the three-month bills and 0.610 percent for the six-month bills.

Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, stood at 0.82 percent last Friday compared to 0.80 percent Jan. 17.

This story has been automatically published from the Associated Press wire which uses US spellings

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