Short-term T-bill yields fell to a two-year low.

The Treasury Department sold $6.5 billion in three-month bills at an average discount rate of 7.62%, down from 8.04% last week. Another $6.5 billion was sold in six-month bills at an average rate of 7.87%, down from 8.27%. Both were the lowest rates since Jan. 17, 1983, when three-month bills went for 7.61% and six-month bills sold for 7.72%. The new discount rates understate the actual return to investors--7.88% for three-month bills and 8.31% for six-month bills.