Interest rates on short-term Treasury bills fell.

The Treasury Department sold $6.6 billion in three-month bills at an average discount rate of 5.40%, down from 5.66% last week. Another $6.6 billion was sold in new six-month bills at an average discount rate of 5.41%, down from 5.70% last week. The rates were the lowest since Jan. 20, when three-month bills sold for 5.23% and six-month bills averaged 5.27%. The new discount rates understate the actual return to investors--5.55% for three-month bills with a $10,000 bill selling for $9,863.50 and 5.64% for six-month bills selling for $9,726.50. The discount rate reflects the price discount received when government securities are purchased at less than face value.