SECURITIES

T-Bill Rates Fall: The Treasury sold $10.4 billion of new three-month bills at an average discount rate of 4.99%, down from 5.04% last week. Another $10.4 billion of new six-month bills was sold at an average discount rate of 5.04%, down from 5.11% last week. The three-month bill rate was the same as the rate on Oct. 15, which was the lowest since they sold for 4.965% on June 27, 1977. The six-month bill rate was the lowest since they averaged 5.03% on Oct. 15. The new discount rates understate the actual return to investors--5.14% for three-month bills, with a $10,000 bill selling for $9,873.90, and 5.25% for a six-month bill selling for $9,745.70. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 5.04% 3-month: 4.99%