Rates fall at weekly US Treasury auction

WASHINGTON (AP) — Interest rates on short-term Treasury bills fell in Monday’s auction with rates on three-month and six-month bills dipping to their lowest levels since September 2013.

The Treasury Department auctioned $26 billion in three-month bills at a discount rate of 0.020 percent, down from 0.025 percent last week. Another $23 billion in six-month bills was auctioned at a discount rate of 0.045 percent, down from 0.050 percent last week.

The three-month rate was the lowest since those bills averaged 0.010 percent on Sept. 30, 2013. The six-month rate was the lowest since they averaged 0.040 percent on the same date.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $$9,999.49, while a six-month bill sold for $9,997.72. That would equal an annualized rate of 0.020 percent for the three-month bills and 0.046 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, was 0.10 last week, down from 0.11 percent the previous week.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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