WASHINGTON (AP) -- Interest rates on short-term Treasury bills fell in Monday's auction, with rates on six-month bills dropping to their lowest level since early November.
The Treasury Department auctioned $34 billion in three-month bills at a discount rate of 0.510 percent, down from 0.530 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.590 percent, down from 0.630 percent last week.
The three-month rate was the lowest since those bills averaged 0.490 percent on Dec. 5. The six-month rate was the lowest since those bills averaged 0.535 percent on Nov. 7.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,987.11, while a six-month bill sold for $9,970.17. That would equal an annualized rate of 0.518 percent for the three-month bills and 0.600 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, fell to 0.85 percent on Friday, down from 0.89 percent on Jan. 3 of last week.