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Short-term Treasury bill rates lower

WASHINGTON -- Interest rates on short-term Treasury securities fell in yesterday's auction.

The Treasury Department sold $16 billion in three-month bills at a discount rate of 0.915 percent, down from 0.930 percent last week. An additional $13 billion was sold in six-month bills at a rate of 1.025 percent, down from 1.030 percent.

The three-month rate was the lowest since Jan. 26 when the bills sold for 0.890 percent. The six-month rate was the lowest since March 29 when the rate was 0.990 percent.

The new discount rates understate the actual return to investors -- 0.929 percent for three-month bills with a $10,000 bill selling for $9,976.90 and 1.044 percent for a six-month bill selling for $9,948.20.

Separately, the Federal Reserve said the average yield for one-year constant maturity Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 1.32 percent last week from 1.23 percent the previous week.

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