Updated at: 12/09/2013 6:05 PM
(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.
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