Short-term T-bill yields fell at the latest auction.

The Treasury sold $7 billion in new three-month bills at an average discount rate of 7.22%, down from 7.28% last week. Another $7 billion was sold in new six-month bills at an average rate of 7.39%, down from 7.43%. The rates were the lowest since June 23, 1980, when three-month bills averaged 7.08% and six-week bills sold for 7.11%. The new discount rates understate the actual return to investors--7.46% for three-month bills and 7.79% for six-month bills.