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 in two weeks.
The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 0.105 percent, down from 0.125 percent last week. Another $24 billion in six-month bills was auctioned at a discount rate of 0.245 percent, the same as last week.
The three-month rate was the lowest since three-month bills averaged 0.075 percent two weeks ago on Aug. 3.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.35, while a six-month bill sold for $9,987.61. That would equal an annualized rate of 0.107 percent for the three-month bills and 0.249 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, rose to 0.39 percent last week from 0.36 percent the previous week.