Rates mixed at weekly US Treasury bill auction

2014-07-14T15:37:44Z 2014-07-14T18:03:18Z Rates mixed at weekly US Treasury bill auctionThe Associated Press The Associated Press
July 14, 2014 3:37 pm

WASHINGTON (AP) — Interest rates on short-term Treasury bills were mixed in Monday's auction, with rates on six-month bills unchanged while rates on three-month bills dropped to the lowest level since late April.

The Treasury Department auctioned $25 billion in three-month bills at a discount rate of 0.025 percent, down from 0.030 percent last week. Another $23 billion in six-month bills was auctioned at a discount rate of 0.060 percent, unchanged from last week.

The three-month rate was the lowest since three-month bills averaged 0.020 percent on April 28.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.37 while a six-month bill sold for $9,996.97. That would equal an annualized rate of 0.025 percent for the three-month bills and 0.061 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, was 0.11 percent last week, unchanged from the previous week.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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