WASHINGTON (AP) — Interest rates on short-term Treasury bills fell in Tuesday's auction to their lowest levels in four weeks.
The Treasury Department auctioned $37 billion in three-month bills at a discount rate of 0.300 percent, down from 0.315 percent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.410 percent, down from 0.420 percent last week.
The three-month rate was the lowest since those bills averaged 0.255 percent four weeks ago on Jan. 19. The six-month rate was the lowest since those bills averaged 0.370 percent, also on Jan. 19.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,992.42, while a six-month bill sold for $9,979.27. That would equal an annualized rate of 0.305 percent for the three-month bills and 0.418 percent for the six-month bills.
The weekly Treasury bill auction, which is normally held on Monday, was held on Tuesday this week because of the President's Day holiday.
Separately, the Federal Reserve said Tuesday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, edged down to 0.51 percent last week from 0.52 percent the previous week.