Interest Rates Fall in Treasury Bill Auction

The interest rate on the U.S. Treasury’s three-month bills declined at the Treasury’s auction to their lowest level in more than four decades, with six-month bills dropping to a record low.

The Treasury sold $15 billion in three-month bills at a discount rate of 2.05%, down from the previous week’s 2.17%. The Treasury sold $14 billion in six-month bills at a discount rate of 2.005%, down from 2.13% the previous week.

The rate on three-month bills was the lowest since 1.895% on Aug. 18, 1958, according to the Treasury.

The government received bids for three-month bills equal to 2.17 times the amount sold, up from 1.82 a week earlier. The bid-cover ratio on the six-month bill was 2.06, up from the previous week’s 1.79.

In Wall Street trading, the yield on three-month bills was 2.10%, down from 2.22% a week ago. The yield on six-month bills was 2.05%, down from 2.17% a week ago.