WebSify
Follow us on
login
Mail
Print

Rates on US Treasury bills fall at weekly auction

Source : AP
Last Updated: Tue, Jan 08, 2013 03:00 hrs

Interest rates on short-term Treasury bills fell in Monday's auction to the lowest levels in three weeks.

The Treasury Department auctioned $32 billion in three-month bills at a discount rate of 0.065 percent, down from 0.075 percent last week. Another $28 billion in six-month bills was auctioned at a discount rate of 0.105 percent, down from 0.120 percent last week.

The three-month rate was the lowest since three-month bills averaged 0.040 percent on Dec. 17. The six-month rate was the lowest since 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 $9,994,69. That would equal an annualized rate of 0.066 percent for the three-month bills and 0.107 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 0.15 percent last week from 0.16 percent in the previous week.



blog comments powered by Disqus
most popular on facebook
talking point on sify finance