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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 This material may not be published, broadcast, rewritten or redistributed.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 52 136 5,209
MORTGAGES 79 182 6,891
FORECLOSURE NOTICES 13 50 1,606
BUILDING PERMITS 328 328 12,307
BANKRUPTCIES 70 175 5,475
BUSINESS LICENSES 30 58 2,119
UTILITY CONNECTIONS 85 182 7,240
MARRIAGE LICENSES 19 43 1,501

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