Rates on US Treasury bills fall at weekly auction

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(AP) Interest rates on short-term Treasury bills fell in Monday’s auction with rates on six-month bills dipping to their lowest point since November.

The Treasury Department auctioned $ 31 billion in three-month bills at a discount rate of 0.260 percent, down from 0.270 percent last week. Another $ 26 billion in six-month bills was auctioned at a discount rate of 0.340 percent, down from 0.400 percent last week.

The three-month rate was the lowest since three-month bills averaged 0.240 percent on May 9. The six-month rate was the lowest since those bills averaged 0.330 percent last Nov. 16.

The discount rates reflect that the bills sell for less than face value. For a $ 10,000 bill, the three-month price was $ 9,993.43, while a six-month bill sold for $ 9,982.81. That would equal an annualized rate of 0.264 percent for the three-month bills and 0.345 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 0.55 percent last week from 0.53 percent the previous week.

Bay News 9 – business

June 27, 2016 |
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