BANKING & FINANCE - May 9, 1994

Savings Bond Sales Fall: The Treasury sold $740 million in U.S. Savings Bonds in April, down 19.6% from $920 million a year earlier, it announced in Washington. Still, the April sales pushed the value of Savings Bonds held by Americans to $175.9 billion, up 6.7% from the $164.8 billion outstanding in April, 1993. Savings Bonds issued on or after March 1, 1993, and held five years or longer earn the market-based interest rate if it averages more than the guaranteed minimum of 4%. The rate from May 1 through Oct. 31 is 4.7%. Bonds issued before March, 1993, retain their existing guaranteed minimum rates until they enter a new extended maturity period. If redeemed within five years, bonds earn 4%.