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

Interest rates on short-term T-bills edged down slightly at the latest auction. The Treasury sold $6.6 billion in new three-month bills at an average discount rate of 5.93%, down from 5.96% last week. Another $6.6 billion was sold in six-month bills at an average discount rate of 6.14%, down from 6.15% last week. The new discount rates understate the actual return to investors--6.12% for three-month bills, with a $10,000 bill selling for $9,850.10, and 6.44% for six-month bills selling for $9,689.60. The discount rate reflects the price discount received when government securities are purchased at less than face value.