Interest rates on short-term T-bills declined again.

The Treasury Department sold $7.7 billion in new three-month bills at an average discount rate of 5.70%, down from 5.86% last week. Another $7.6 billion was sold in new six-month bills at an average discount rate of 5.73%, down from 5.89% last week. The new discount rates understate the actual return to investors--5.86% for three-month bills and 5.98% for six-month bills. The discount rate reflects the price discount received when government securities are purchased at less than face value.