THE ECONOMY

Short-Term Treasury Bill Rates Dip: Interest rates on short-term Treasury securities fell at auction. The Treasury Department sold $10.4 billion in three-month bills at an average discount rate of 5.51%, down from 5.58% last week. Another $10.4 billion in six-month bills was sold at an average discount rate of 5.59%, down from 5.69%. The three-month bill rate was the lowest since 5.46% on May 28. The six-month bill rate was the lowest since 5.54% on July 13, 1987. The new discount rates understate the actual return to investors--5.68% for three-month bills, with a $10,000 bill selling for $9,860.70, and 5.85% for a six-month bill selling for $9,717.40.

T-Bill Auction 6-month: 5.59% 3-month: 5.51%