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Treasury bill yields fell at the latest auction.

The Treasury sold $7 billion in new three-month bills at an average discount rate of 7.03%, down from 7.22% last week. Another $7 billion was sold in new six-month bills at an average rate of 7.16%, down from 7.39% last week. The three-month rate was the lowest since 6.37% on June 16, 1980, and the six-month rate was the lowest since June 23, 1980, when it averaged 7.11%. The new discount rates understate the actual return to investors--7.26% for three-month bills and 7.53% for six-month bills.


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