- The Washington Times - Monday, April 20, 2009

WASHINGTON (AP) - Interest rates on short-term Treasury bills fell in Monday’s auction to the lowest levels since January.

The Treasury Department auctioned $28 billion in three-month bills at a discount rate of 0.135 percent, down from 0.180 percent last week. Another $27 billion in six-month bills was auctioned at a discount rate of 0.33 percent, down from 0.37 percent last week.

The three-month rate was the lowest since those bills averaged 0.12 percent on Jan. 12. The six-month rate was the lowest since those bills averaged 0.32 percent on Jan. 20.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,996.59, while a six-month bill sold for $9,983.32. That would equal an annualized rate of 0.137 percent for the three-month bills and 0.335 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, fell to 0.55 percent last week from 0.60 percent the previous week.

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