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IN BRIEF / ECONOMY

Rates for 3-, 6-Month T-Bills at 3-Week Low

January 01, 2002|Associated Press

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

The Treasury Department sold $14.7 billion in three-month bills at a discount rate of 1.710%, down from 1.720% last week. An additional $17.7 billion was sold in six-month bills at a rate of 1.8%, down from 1.85%.

Both the three-month and six-month rates were the lowest since Dec. 10, when the bills sold for 1.675% and 1.765%, respectively.

The new discount rates understate the actual return to investors--1.740% for three-month bills with a $10,000 bill selling for $9,956.80 and 1.842% for a six-month bill selling for $9,908.50.

In a separate report, the Federal Reserve said the average yield for one-year constant-maturity Treasury bills, the most popular index for making changes in adjustable-rate mortgages, rose to 2.28% last week from 2.23% the previous week.

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