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Rates at weekly US Treasury auction fall

Updated at: 12/09/2013 5:05 PM
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(AP) WASHINGTON - Interest rates on short-term Treasury bills fell in Monday’s auction to their lowest levels in five weeks.

The Treasury Department auctioned $32 billion in three-month bills at a discount rate of 0.070 percent, down from 0.075 percent last week. Another $27 billion in six-month bills was auctioned at a discount rate of 0.095 percent, down from 0.100 percent last week.

The three-month rate was the lowest since three-month bills averaged 0.050 percent five weeks ago on Nov. 4. The six-month rate was the lowest since those bills averaged 0.085 percent, also on Nov. 4.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.23 while a six-month bill sold for $9,995.20. That would equal an annualized rate of 0.071 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 up to 0.30 percent last week from 0.29 percent the previous week.

(Copyright 2013 by The Associated Press. All Rights Reserved.)