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BRIEFLY

January 26, 1988

The Treasury sold $6.4 billion in new three-month bills at an average discount rate of 5.85%, down from 5.98% last week. Another $6.4 billion was sold in new six-month bills at an average discount rate of 6.19%, down from 6.37% last week. The rates were the lowest since three-month bills sold for 5.73% on Dec. 28 and six-month bills averaged 6.12% on Nov. 30. The new discount rates understate the actual return to investors--6.04% for three-month bills, with a $10,000 bill selling for $9,852.10, and 6.50% for six-month bills selling for $9,687.10. The discount rate reflects the price discount received when government securities are purchased at less than face value.

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