Interest rates on short-term Treasury bills fell.

The Treasury Department sold $6.62 billion in new three-month bills at an average discount rate of 5.77%, down from 5.98% last week. Another $6.61 billion was sold in new six-month bills at an average discount rate of 6%, down from 6.08% last week, when rates had jumped to the highest levels in 10 months. Even with the declines Monday, rates were still well above their lows on April 6 of 5.53% for three-month bills and 5.63% for six-month bills. The new discount rates understate the actual return to investors--5.95% for three-month bills with a $10,000 bill selling for $9,854.10 and 6.29% for six-month bills selling for $9,696.70. The discount rate reflects the price discount received when government securities are purchased at less than face value.