Interest rates on short-term T-bills edged lower.

The Treasury Department sold $6.8-billion in new three-month bills at an average discount rate of 6.96%, down from 6.97% last week. Another $6.8 billion was sold in new six-month bills at an average discount rate of 7%, down from 7.03% last week. The new discount rates understate the actual return to investors--7.18% for a $10,000 three-month bill selling for $9,824.10 and 7.36% for a six-month bill selling for $9,646.10. The discount rate reflects the price discount received when government securities are purchased at less than face value.