WASHINGTON (AFX) - Interest rates on short-term Treasury bills fell in Tuesday's auction to the lowest levels since June.
The Treasury Department auctioned $18 billion in three-month bills at a discount rate of 4.855 percent, down from 4.960 percent last week. Another $16 billion in six-month bills was auctioned at a discount rate of 4.920 percent, down from 4.970 percent last week.
The three-month rate was the lowest since these bills averaged 4.830 percent on June 19. The six-month rate was the lowest since 4.815 percent on June 5.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,877.28 while a six-month bill sold for $9,751.27.
Separately, the Federal Reserve said Tuesday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, fell to 5.03 percent last week from 5.07 percent the previous week.
Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
