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BRIEFLY

December 01, 1987

The Treasury sold $6.4 billion in new three-month bills at an average discount rate of 5.49%, down from 5.70% last week. Another $6.4 billion was sold in new six-month bills at an average discount rate of 6.12%, up slightly from from 6.11% last week. The rates on three-month bills were the lowest since Oct. 26 when they sold for 5.12%, while the six-month rates were the highest since Nov. 16 when these bills averaged 6.33%. The new discount rates understate the actual return to investors--5.66% for three-month bills, with a $10,000 bill selling for $9,861.20, and 6.42% for six-month bills selling for $9,690.60. The discount rate reflects the price discount received when government securities are purchased at less than face value.

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