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YIELDS MIXED ON T-BILLS

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

The Treasury Department sold $10.0 billion in three-month bills at an average discount rate of 7.06 percent, up from 7.02 percent last week. Another $10.0 billion was sold in six-month bills at an average discount rate of 6.96 percent, unchanged from last week.

The new discount rates understate the actual return to investors -- 7.29 percent for three-month bills with a $10,000 bill selling for $9,821.50, and 7.31 percent for six-month bills with a $10,000 bill selling for $9,648.10.

In a separate report, the Federal Reserve said Monday that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable rate mortgages, rose to 7.30 percent last week, up from 7.29 percent the previous week.

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