Interest rates on short-term Treasury bills fell in Monday's auction with rates on six-month bills dropping to the lowest level in three weeks.
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The Treasury Department auctioned $26 billion in three-month bills at a discount rate of 0.155 percent, down from 0.165 percent last week. Another $26 billion in six-month bills was auctioned at a discount rate of 0.230 percent, down from 0.245 percent last week.
The three-month rate was the lowest since three-month bills averaged 0.150 percent on April 26. The six-month rate was the lowest since these bills averaged 0.220 percent three weeks ago on April 19.
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The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,996.08 while a six-month bill sold for $9,988.31. That would equal an annualized rate of 0.157 percent for the three-month bills and 0.233 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 0.39 percent last week from 0.43 percent the previous week.














