Interest rates on short-term Treasury bills declined in Monday's auction with rates on three-month bills falling to their lowest level since late April.
The Treasury Department auctioned $28 billion in three-month bills at a discount rate of 0.025 per cent, down from 0.030 per cent last week. Another $25 billion in six-month bills was auctioned at a discount rate of 0.050 per cent, down from 0.055 per cent last week.
The rate for three-month bills was the lowest since those bills averaged 0.020 per cent on April 28. The six-month rate was the lowest since they averaged 0.045 per cent on May 5.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.37 while a six-month bill sold for $9,997.47. That would equal an annualized rate of 0.025 per cent for the three-month bills and 0.051 per cent 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 per cent last week, unchanged from the previous week.
This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.