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Interest rates on short-term Treasury securities were unchanged to lower in Monday's auction.

The Treasury Department sold $10.02 billion in three-month bills at an average discount rate of 6.52 percent, the same as in the last auction on Dec. 21. Another $10.04 billion was sold in six-month bills at an average discount rate of 6.48 percent, down from 6.57 percent on Dec. 21.

The new discount rates understate the actual return to investors -- 6.72 percent for three-month bills with a $10,000 bill selling for $9,835.20, and 6.79 percent for a six-month bill selling for $9,670.60.

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, fell to 6.95 percent last week, down from 6.96 percent the previous week.

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