Short-term T-bills rates were little changed.

The Treasury Department sold $7 billion in new three-month bills at an average discount rate of 6.07%, the same as last week. Another $7 billion was sold in new six-month bills at an average discount rate of 6.10%, up from 6.09% last week. The new discount rates understate the actual return to investors--6.25% for three-month bills and 6.30% for six-month bills. The discount rate reflects the price discount received when government securities are purchased at less than face value. In a separate report, the Federal Reserve Board said the average yield for one-year Treasury bills was 6.49% last week, down from 6.56% the week before. This interest rate is often used to calculate rates for homeowners with adjustable-rate mortgages.