Rates on U.S. Treasury Bills Drop at Auction

WASHINGTON (AP) -- Interest rates on short-term Treasury bills fell in Monday's auction to the lowest levels since December.

The Treasury Department auctioned $35 billion in three-month bills at a discount rate of 0.065 percent, down from 0.075 percent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.095 percent, down from 0.105 percent last week.

The three-month rate was the lowest since these bills averaged 0.040 percent on Dec. 17. The six-month rate was the lowest since these bills averaged 0.090 percent, also on Dec. 17.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.36 while a six-month bill sold for $9,995.20. That would equal an annualized rate of 0.066 percent for the three-month bills and 0.096 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, edged down to 0.13 percent last week from 0.14 percent the previous week.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2351861, ~/Articles/ArticleHandler.aspx, 12/20/2014 1:35:08 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement