Interest rates on short-term T-bills edged down...

Interest rates on short-term T-bills edged down slightly. The Treasury sold $6.6 billion in new three-month bills at an average discount rate of 5.96%, down from 6.01% at a delayed auction on Friday. Another $6.6 billion was sold in new six-month bills at an average discount rate of 6.15%, down from 6.18% at Friday’s auction. On Thursday, three-month bills sold for 6.01% and six-month bills averaged 6.20%. The new discount rates understate the actual return to investors--6.15% for three-month bills with a $10,000 bill selling for $9,849.30 and 6.45% for six-month bills selling for $9,689.10. The discount rate reflects the price discount received when government securities are purchased at less than face value.