BUSINESS NOTES TREASURY BILL RATES DOWN IN AUCTION.WASHINGTON - Interest rates on short-term Treasury securities fell in Monday's auction. The Treasury Department sold $12.5 billion in three-month bills at a discount rate of 5.05 percent, down from 5.7 percent last week. An additional $10.5 billion was sold in six-month bills at a rate of 4.825 percent, down from 5.36 percent. The three-month rate was the lowest since Nov. 8, 1999, when the bills sold for 5.03 percent. The six-month rate was the lowest since Sept. 27, 1999, when the rate was 4.81. The new discount rates understate un·der·state v. un·der·stat·ed, un·der·stat·ing, un·der·states v.tr. 1. To state with less completeness or truth than seems warranted by the facts. 2. the actual return to investors - 5.188 percent for three-month bills with a $10,000 bill selling for $9,872.30 and 5.014 percent for a six-month bill selling for $9,756.10. 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 This article is about the US mortgage type. For an international perspective, see Variable rate mortgage. An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on an index. , fell to 4.89 percent last week from 5.34 percent the previous week. - Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Satellite contract given OK by Navy The U.S. Navy has authorized Boeing Satellite Systems Inc. to begin production of the 11th in a series of UHF (Ultra High Frequency) The range of electromagnetic frequencies from 300 MHz to 3 GHz. In the U.S., analog television has used UHF channels 52 to 69 in the 700 MHz band. Follow-On satellites, which provide global communications for the armed forces. The agreement amends an existing $1.9 billion contract under which El Segundo-based BSS See 802.11. BSS - Block Started by Symbol has built and launched 10 satellites. The satellite will be launched in 2003. - Daily News Northrop moves to acquire Litton Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. Corp. announced Monday that it has begun its cash tender offer for all outstanding shares of Woodland Hills-based Litton Industries Named after inventor Charles Litton Sr., Litton Industries was a large defense contractor in the United States, bought by the Northrop Grumman Corporation in 2001. Inc. for $80 per common share and $35 per Series B preferred share. The offer by Century City-based Northrop will expire at 9 p.m. Feb. 2, unless the offer is extended. Northrop announced Dec. 21 that it was acquiring Litton in a deal with $5.1 billion in cash and debt assumption. - Daily News Consumer credit up in November WASHINGTON - Americans borrowed money more freely in November, at the fastest pace in three months, as they made heavy use of credit cards and financed autos and other personal items on credit. The Federal Reserve said Monday that consumer credit increased by a larger-than-expected seasonally adjusted Seasonally adjusted Mathematically adjusted by moderating a macroeconomic indicator (e.g., oil prices/imports) so that relative comparisons can be drawn from month to month all year. $12.9 billion in November, or 10.2 percent at an annual rate. Many analysts expected borrowing to grow more slowly in November on the belief consumers were growing more cautious, the result of less confidence in the economy, the stock market's volatility, slowing job growth and higher energy prices. - Associated Press OPEC OPEC: see Organization of Petroleum Exporting Countries. OPEC in full Organization of the Petroleum Exporting Countries Multinational organization established in 1960 to coordinate the petroleum production and export policies of its expected to curtail output LONDON - Energy analysts warned Monday of stiffer oil prices to come if OPEC members curtail their crude output, as expected, by at least 1.5 million barrels - or 5 percent - a day. Kuwaiti Oil Minister Sheik Saudi Al Sabah, reiterating comments made over the weekend, said there is ``a near consensus'' among OPEC's 11 members to cut production by that amount when representatives meet next week in Vienna, Austria. |
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