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IN BRIEF/ THE ECONOMY

Rates on Short-Term T-Bills Mixed in Auction

September 12, 2006|From the Associated Press

The Treasury Department auctioned $18 billion in three-month bills at a discount rate of 4.82%, down from 4.855% last week.

An additional $16 billion in six-month bills was auctioned at a discount rate of 4.935%, up from 4.92% last week.

The new discount rates understate the return to investors -- 4.947% for three-month bills, with a $10,000 bill selling for $9,878.16, and 5.132% for a six-month bill selling for $9,750.51.

Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, edged down to 5.02% last week from 5.03% the previous week.

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