BANKING & FINANCE
Rates on Short-Term T-Bills Dip: Interest rates on short-term Treasury securities declined or held steady at auction. The Treasury Department sold $14.03 billion in three-month bills at an average discount rate of 5.32%, down from 5.34% last week. An additional $14.06 billion was sold in six-month bills at an average rate of 5.25%, unchanged from last week. The three-month rate was the lowest since the 5.29% of Oct. 30. The new discount rates understate the actual return to investors--5.48% for three-month bills with a $10,000 bill selling for $9,865.50, and 5.48% for a six-month bill selling for $9,734.60. In a separate report, the Federal Reserve Board said that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 5.44% last week from 5.43%.