Interest rates on short-term Treasury bills fell.

The Treasury sold $6.6 billion in new six-month bills at an average discount rate of 5.64%, down from 5.70% last week. Another $6.6 billion in new six-month bills was sold at an average discount rate of 5.93%, down from 5.95% last week. The new discount rates understate the actual return to investors--5.82% for three-month bills with a $10,000 bill selling for $9,857.40 and 6.22% for six-month bills selling for $9,700.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.

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