1.   In such circumstances, lending will be at rates close to market rates and will be designed to avoid any distortion to bill rates.

2.   Very often this is combined with an option to take money instead should bill rates be unfavourable.

3.   But shorter maturity bills rates were down an average three basis points, outperforming the long end of the market for the second straight day.

4.   In the shorter maturities, bill rates were up about one-hundredth of a percentage point, and intermediate maturities were mixed.

5.   Intermediate notes and shorter maturity bill rates were either down slighty or unchanged.

6.   Longer dated bonds rose as a stronger U.S. bond market Monday helped offset the impact of higher bill rates.

7.   Most short-term bill rates were slightly higher, but the three-month issue was down three-hundredths of a percentage point.

8.   On the other hand, Short-term bill rates were mixed.

9.   Shorter bill rates were unchanged.