US short-term Treasury bill rates dip to lowest levels seen since early 2012
APWASHINGTON -- Interest rates on short-term Treasury bills fell in Tuesday's auction to the lowest levels since early 2012.
September 5, 2013, 12:21 am TWN
The Treasury Department auctioned US$30 billion in three-month bills at a discount rate of 0.03 percent, down from 0.04 percent last week. Another US$25 billion in six-month bills was auctioned at a discount rate of 0.055 percent, down from 0.065 percent last week.
The three-month rate was the lowest since three-month bills averaged 0.025 percent on Jan. 17, 2012. The six-month rate was the lowest since these bills averaged 0.05 percent on Jan. 9, 2012.
The discount rates reflect that the bills sell for less than face value. For a US$10,000 bill, the three-month price was US$9,999.24 while a six-month bill sold for US$9,997.22. That would equal an annualized rate of 0.03 percent for the three-month bills and 0.056 percent for the six-month bills.