T-bill yields were mixed. The Treasury auctioned 13-week bills at an average discount of 7.74 percent, up from 7.73 percent last week, and 26-week bills at an average discount of 7.64 percent, unchanged from the previous week. The investment rate was 8 percent on the 13-week bills and 8.06 percent on the 26-week bills.
Mortgage rates on 15-year fixed-rate loans that closed in early May averaged 10.43 percent, compared with 10.56 percent for 30-year fixed mortgages, the Federal Housing Finance Board reported.
Comptroller of the Currency Robert Clarke, seeking to reassure Northeastern executives nervous about a drying up of credit, said the federal government has not toughened its regulation of banks. What it has done, he said, is uncover bad loans at many institutions as it reacted to changes in the economy.
Bankers Trust reduced its corporate finance staff by 75 employees, or about 10 percent, and redeployed other workers in a streamlining intended to meet leaner times in corporate bank funding.
UAL's nonunion employees met with Gerald Greenwald, head of the union group trying to buy the airline company, in hopes of avoiding a setback in the buyout effort. The non-contract workers Sunday criticized the union group for not accepting their proposed wage concessions and benefit modifications.
Marriott has begun construction on its seventh Courtyard by Marriott hotel in the Washington area, a $10 million, 152-room facility at the intersection of Kenilworth Avenue and Greenbelt Road in Greenbelt.
Sears this week will open 198 of its in-store, brand-name electronics and home appliance outlets in 16 states and Puerto Rico, bringing the total of Brand Central outlets to 840.
Citytrust has sold its MasterCard, Visa and American Express credit card portfolios to First Omni Bank, a subsidiary of First Maryland Bancorp., to "strengthen its capital position." The size of the portfolio is about $21 million.
NCNB plans to purchase themortgage servicing portfolio of Fundamental Mortgage Corp. of Dallas and its 300-employee facility in Kentucky. The purchase will triple the size of NCNB Mortgage Corp., making it one of the 15 largest mortgage companies in the country, company officials said.
Burns Fry Ltd. of Toronto agreed to purchase the Canadian retail division of Prudential-Bache Securities Canada. Terms were not disclosed.
Britain's prime minister, Margaret Thatcher, rejected the idea of a federal Europe, saying she is concerned about German domination. The idea has been broached by several EC leaders, including West German Chancellor Helmut Kohl.
Japan and the United States have a long way to go to improve trade relations, but some U.S. companies are succeeding in the Japanese marketplace, U.S. Trade Representative Carla A. Hills said at the annual dinner of the Japan Society.
The Fed approved the merger of Baltimore Bancorp and Municipal Savings Bank of Towson, Md.
Westinghouse received a $177 million contract from the Naval Sea Systems Command to build seven anti-submarine warfare combat systems for ships. The production will be managed and operated at the company's plant in Sykesville, Md.
National Semiconductor reported fourth-quarter earnings fell 94 percent from the year-ago period, but it said the year-earlier results were distorted by a one-time gain from the sale of its mainframe computer business. For the fiscal year, the company posted a loss of $25 million, compared with a loss of $23.2 million in the prior year.
Mario Gabelli, a New York financier, has taken a 6.15 percent stake in General Cinema, according to documents filed with the SEC. The filing said Gabelli purchased the stock for investment only.
Faith S. Hochberg, a partner in a New Jersey law firm, has been appointed to the new position of senior deputy chief counsel of the OTS.
A supermarket chain in New York said it will stop selling Procter & Gamble's Folger's coffee for 60 days in sympathy with a group that charges that the company's business ties to El Salvador help support right-wing death squads. The 60-store Red Apple chain agreed to remove Folger's from its shelves in exchange for a pledge from the group Neighbor to Neighbor that it won't boycott the stores.