WASHINGTON (AP) Interest rates on short-term Treasury bills fell in Tuesday's auction to the lowest levels since early 2012.
The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.030 percent, down from 0.040 percent last week. Another $25 billion in six-month bills was auctioned at a discount rate of 0.055 percent, down from 0.065 percent last week.
The three-month rate was the lowest since three-month bills averaged 0.025 percent on Jan. 17, 2012. The six-month rate was the lowest since these bills averaged 0.050 percent on Jan. 9, 2012.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.24 while a six-month bill sold for $9,997.22. That would equal an annualized rate of 0.030 percent for the three-month bills and 0.056 percent for the six-month bills.
The weekly auction of three-month and six-month Treasury bills is normally held on Monday but took place on Tuesday this week because of the Labor Day holiday.