Interest rates on short-term Treasury bills fell.

The Treasury Department sold $6.6 billion in new three-month bills at an average discount rate of 5.53%, down from 5.72% last week. An additional $6.6 billion was sold in new six-month bills at an average discount rate of 5.63%, down from 5.80% last week. The rates were the lowest since three-month bills averaged 5.47% on March 2 and six-month bills sold for 5.55% on March 23. The new discount rates understate the actual return to investors--5.70% for three-month bills with a $10,000 bill selling for $9,860.20 and 5.89% for six-month bills selling for $9,715.40. The discount rate reflects the price discount received when government securities are purchased at less than face value.