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WASHINGTON - Interest rates on short-term Treasury bills fell in Monday's auction to the lowest levels in three years.
The Treasury Department auctioned $23 billion in three-month bills at a discount rate of 2.335 percent, down from 2.370 percent last week. Another $21 billion in six-month bills was auctioned at a discount rate of 2.310 percent, down from 2.400 percent last week.
The three-month rate was the lowest since these bills averaged 2.320 percent on Jan. 24, 2005. The six-month rate was the lowest since 2.280 percent on Nov. 15, 2004.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,940.98, while a six-month bill sold for $9,883.22.
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, fell to 2.31 percent last week from 2.83 percent the previous week.