SECURITIES

Treasury Bill Rates Decline: The Treasury sold $11.6 billion in new three-month bills at an average discount rate of 3.64%, down from 3.65% last week. Another $11.7 billion in new six-month bills was sold at an average discount rate of 3.74%, down from 3.78% last week. The three-month bill rate was the lowest since they sold for 3.60% on April 13. The six-month bill rate was the lowest since they averaged 3.73%, also on April 13. The new discount rates understate the actual return to investors--3.72% for three-month bills, with a $10,000 bill selling for $9,908.00, and 3.87% for a six-month bill selling for $9,810.90. The discount rate reflects the price discount received when the securities are purchased at less than face value.

T-Bill Auction 6-month: 3.74% 3-month: 3.64%