Sponsored by: Investment Center

Something new in your business?  Click here to submit your business press release

Chamber Corner | Main Street News | Job Hunt | Classifieds | Calendar | Illinois Lottery 

Rates on US Treasury bills fall at weekly auction

[July 09, 2013]  WASHINGTON (AP) -- Interest rates on short-term Treasury bills fell in Monday's auction with rates on six-month bills dipping to the lowest level since early 2012.

The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.045 percent, down from 0.050 percent last week. Another $25 billion in six-month bills was auctioned at a discount rate of 0.075 percent, down from 0.085 percent last week.

The three-month rate was the lowest since three-month bills averaged 0.040 percent on May 6. The six-month rate was the lowest since these bills averaged 0.070 percent on Jan. 23, 2012.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,998.86 while a six-month bill sold for $9,996.21. That would equal an annualized rate of 0.046 percent for the three-month bills and 0.076 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, edged down to 0.15 percent last week from 0.16 percent the previous week.

[Associated Press]

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.