WASHINGTON | Interest rates on short-term Treasury bills fell in Monday's auction with rates on both three-month and six-month bills dropping to the lowest levels on record.

The Treasury Department auctioned $27 billion in three-month bills at a discount rate of 0.150 percent, down from 0.355 percent last week. Another $27 billion in six-month bills was auctioned at a discount rate of 0.840 percent, down from 0.990 percent last week.

The rates on both three-month bills and six-month bills set new all-time lows as investors continue to flock to the safety of Treasury securities during the current period of financial market turmoil.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,996.21 while a six-month bill sold for $9,957.53. That would equal an annualized rate of 0.152 percent for the three-month bills, and 0.855 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 1.12 percent last week from 1.24 percent the previous week.