BANKING & FINANCE - July 30, 1992

Five-Year Note Yields Fall: Yields on five-year Treasury notes fell at the latest auction to their lowest level since the start of regular five-year auctions in 1977. The average yield was 5.56%, down from 6.43% at the last auction on June 24. The notes will carry a coupon interest rate of 5.5% with each $10,000 in face value selling for $9,974.10. A total of $10.5 billion in notes were sold out of bids totaling $25.2 billion. In Tuesday’s auction, yields on two-year Treasury notes fell to the lowest level since the start of regular auctions of that security in 1974. The average yield was 4.29%, down from 5.11% at the last auction on June 23. The notes will carry a coupon interest rate of 4 1/4% with each $10,000 in face value selling for $9,992.40. A total of $15.2 billion in notes were sold out of bids totaling $42.2 billion.