WASHINGTON — Interest rates on short-term Treasury bills fell in yesterday’s auction, with rates on three-month bills dropping to the lowest level since early March.
The Treasury Department auctioned $27 billion in three-month bills at a discount rate of 0.130 percent, down from 0.160 percent last week. Another $27 billion in six-month bills was auctioned at a discount rate of 0.210 percent, down from 0.220 percent.
The three-month rate was the lowest since three-month bills averaged 0.125 percent on March 1. The six-month rate was the lowest since these bills averaged 0.205 percent on March 8.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,996.71 while a six-month bill sold for $9,989.38. That would equal an annualized rate of 0.132 percent for the three-month bills and 0.213 percent for the six-month bills.
Separately, the Federal Reserve said the average yield for one-year Treasury bills was unchanged at 0.36 percent last week.