Yields on three-month T-bills declined to 6.92%.

The Treasury Department sold $7.2 billion in new three-month bills at the new average discount rate, down from last week’s 7%. Another $7.2 billion in new six-month bills was sold at an average discount rate of 7%, down from 7.08% last week. The new discount rates understate the actual return to investors--7.14% for three-month bills and 7.36% for six-month bills. The discount rate reflects the price discount received when government securities are purchased at less than face value.