Interest rates on short-term Treasury bills fell in Tuesday's auction, with rates on three-month bills falling to the lowest level since mid-October.
The Treasury Department auctioned $26 billion in three-month bills at a discount rate of 0.015 per cent, down from 0.020 per cent last week. Another $26 billion in six-month bills was auctioned at a discount rate of 0.065 per cent, down from 0.085 per cent last week.
The three-month rate was the lowest since three-month bills averaged 0.010 per cent on Oct. 14. The six-month rate was the lowest since these bills averaged 0.060 per cent on Nov. 10.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.62 while a six-month bill sold for $9,996.71. That would equal an annualized rate of 0.015 per cent for the three-month bills and 0.066 per cent for the six-month bills.
The weekly auction of three- and six-month bills, normally conducted on Monday, was held on Tuesday this week because of the President's Day holiday.
Separately, the Federal Reserve said that the weekly average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, would be released on Wednesday this week. Federal offices in Washington were closed Tuesday due to inclement weather.
This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.