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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Six-month Treasury bills at lowest level on record

WASHINGTON – Interest rates on short-term Treasury securities dropped in Monday’s auction, with rates on six-month bills falling to a record low.

The Treasury Department auctioned $27 billion in three-month bills at a discount rate of 0.020 percent, down from 0.030 percent last week. Another $24 billion was auctioned in six-month bills at a discount rate of 0.060 percent, down from 0.065 percent last week.

The three-month rate was lowest since those bills averaged 0.005 percent in December 2008. The six-month rate is the lowest on record.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.49 while a six-month bill sold for $9,996.97. That would equal an annualized rate of 0.020 percent for the three-month bills and 0.061 percent for the six-month bills.