
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, July 19, 1990                   TAG: 9007190133
SECTION: BUSINESS                    PAGE: A11   EDITION: METRO 
SOURCE: The New York Times
DATELINE:                                 LENGTH: Short

BANK YIELDS IN 7TH WEEK OF DECLINE

Yields on certificates of deposit and money market accounts continued to ease during the week that ended Tuesday. It was the seventh consecutive week of decline.

"The downward trend in short-term rates this week was expected because the Federal Reserve moved to ease basic interest rates last Friday," said Robert K. Heady, the president of The Bank Rate Monitor. `How deep the rate decline will be, and how long, depend on the Fed's next step in lowering interest rates, which is also expected because of the major weaknesses in the economy.

"Meanwhile, more investors are still moving funds out of banks and into stocks and stock mutual funds. The outflow serves to inhibit some banks from cutting yields."

The average discount rate on 90-day Treasury bills plunged to 7.62 percent, from 7.81 percent the week before, and the average rate on the six-month bills tumbled to 7.52 percent, from 7.75.

The yield on banks' three-month certificates dipped a basis point, to 7.90 percent.

by CNB