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VOL. 123 | NO. 221 | Tuesday, November 11, 2008

Rates Drop at Weekly Treasury Bill Auction

AP

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WASHINGTON (AP) - Interest rates on short-term Treasury bills fell in Monday's auction with three-month bills dropping to the lowest level on record.

The Treasury Department auctioned $27 billion in three-month bills at a discount rate of 0.355 percent, down from 0.530 percent last week. Another $27 billion in six-month bills was auctioned at a discount rate of 0.990 percent, down from 1.100 percent last week.

The three-month rate was the lowest on record while the six-month rate was the lowest since these bills averaged 0.975 percent on March 8, 2004.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,991.03 while a six-month bill sold for $9,949.95. That would equal an annualized rate of 0.360 percent for the three-month bills and 1.009 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 1.24 percent last week from 1.44 percent the previous week.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 75 255 11,693
MORTGAGES 72 295 15,274
FORECLOSURE NOTICES 3 71 2,982
BUILDING PERMITS 198 590 27,844
BANKRUPTCIES 62 280 11,242
BUSINESS LICENSES 35 98 4,136
UTILITY CONNECTIONS 94 516 17,000
MARRIAGE LICENSES 18 80 3,544

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