Rates fall at weekly US Treasury auction

Published on NewsOK Modified: October 21, 2013 at 5:05 pm •  Published: October 21, 2013

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 in three weeks.

The Treasury Department auctioned $35 billion in three-month bills at a discount rate of 0.035 percent, down from 0.130 percent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.070 percent, down from 0.150 percent last week.

The three-month rate was the lowest since three-month bills averaged 0.010 percent on Sept. 30. The six-month rate was the lowest since those bills averaged 0.060 percent on Oct. 7.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.120 while a six-month bill sold for $9,996.46. That would equal an annualized rate of 0.035 percent for the three-month bills and 0.071 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 0.14 percent last week, unchanged from the previous week.