Rates fall at weekly US Treasury bill auction, 6-month bill hits low
APWASHINGTON -- Interest rates on short-term Treasury bills fell in Monday's auction, with rates on six-month bills dropping to the lowest level on record.
September 18, 2013, 12:11 am TWN
The Treasury Department auctioned US$30 billion in three-month bills at a discount rate of 0.010 percent, down from 0.020 percent last week. Another US$25 billion in six-month bills was auctioned at a discount rate of 0.030 percent, down from 0.035 percent last week.
The three-month rate was the lowest since three-month bills averaged 0.005 percent on Dec. 19, 2011. The six-month rate was the lowest on record.
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$9,999.75, while a six-month bill sold for US$9,998.48. That would equal an annualized rate of 0.010 percent for the three-month bills and 0.030 percent for the six-month bills.