OTHER NEWS - March 1, 1993

Savings Bond Rate To Plunge: The Treasury Department said it will slash the guaranteed minimum annual yield on newly issued savings bonds to 4%, from 6%, effective today. With the sharp decline in long-term interest rates in recent months, savings bond yields offered a bonanza to savers. Series EE bonds, for example, guaranteed to pay 6% annually or 85% of the yield on five-year Treasury notes--whichever was higher--if held for five years. By last Friday, the market yield on five-year Treasury notes was 5.20%--which meant savings bond buyers could snag a substantial premium over prevailing Treasury rates. The new minimum rate applies only to savings bonds sold beginning today; outstanding bonds will retain the previous guaranteed yields. The last change in the guaranteed minimum rate was Nov. 1, 1986, when it fell from 7.5% to 6%.