Interest rates fell on short-term Treasury-bills.

The Treasury Department sold $7.8 billion in new three-month bills at an average discount rate of 5.18%, down from 5.30% last week. Another $7.8 billion was sold in new six-month bills at an average discount rate of 5.21%, down from 5.39% last week. The rates were the lowest since three-month bills sold for 5.13% on Oct. 14 and six-month bills averaged 5.13% on Oct. 6. The new discount rates understate the actual return to investors--5.32% for three-month bills, with a $10,000 bill selling for $9,869.10 and 5.43% for six-month bills selling for $9,736.60. The discount rate reflects the price discount received when government securities are purchased at less than face value.