ECONOMY

Yields on seven-year Treasury notes fell to the lowest level since January. The average yield was 8.57 percent, down from 8.62 percent in April.

Money market mutual fund yields were mixed, said the Donoghue Organization. Average seven-day simple yields were at 7.65 percent, down from 7.68, and 30-day simple yields stood unchanged at 7.67 percent.

COMPANIES

Ford joined Unocal's anti-smog effort, saying it would pay to get 1,000 pollution-belching cars off the road. Unocal announced last month it would buy 7,000 pre-1971 cars for $700 each to be scrapped. Ford said it would offer participants an additional $700 toward the purchase or lease of new Ford vehicles.

May Centers has reportedly offered to buy back Garfinckel's leases at its Montgomery and Annapolis malls. Sources said the Montgomery lease would net about $2 million and the Annapolis lease $400,000 for Garfinckel's. The St. Louis-based May, managing owner of the malls, must get approval for the deal from Garfinckel's creditors, sources said.

MNC Financial's commercial paper and long-term debt ratings as well as the long- and short-term ratings of its bank subsidiaries' deposits were downgraded by Moody's Investor Service, which cited its "expectation for further deterioration in MNC's asset quality," primarily in construction and development lending.

United Press International and Allied Financial News Network have formed a joint venture for sports reporting and video news coverage.

ACQUISITIONS

Paramount Communications boosted its majority stake in Virginia-based TVX Broadcast Group and offered to buy the 17 percent it doesn't own for about $52 million. Paramount said it had agreed to purchase 757,852 shares of TVX from Citicorp Venture Capital and First Capital of Chicago. TVX owns TV station WDCA in Washington.

REGULATION

Banks that take advantage of a proposal by the Office of the Comptroller of the Currency that would allow them to advertise their common trust funds would be subject to Securities and Exchange Commission regulations governing mutual funds, the SEC said.

Mexican companies are exporting cement into the U.S. market at less than fair value, the Commerce Department said. The finding clears the way for the International Trade Commission to determine if the products are harming U.S. companies.

CONTRACTS

U.S. Marine Management Co. received a $161.5 million contract to operate and maintain 18 Navy ocean surveillance vessels.

Beech Aerospace Services received a $61.5 million Navy contract for logistics support of trainer aircraft.

EARNINGS

CBS reported a 16 percent increase in second-quarter earnings from the same period a year ago.

Hilton Hotels said its second-quarter earnings fell 9 percent.

Motorola reported second-quarter earnings were up 4.5 percent.

Safeway reported a 206 percent jump in second-quarter profits, crediting the early Easter holiday for much of the increase.

Walgreen said its third-quarter earnings were up 13 percent.

INTERNATIONAL

European companies and television networks developing high definition television formed a consortium in a bid to make their version of razor-sharp pictures and digital sound acceptable worldwide. The consortium is named Vision 1250 after the 1,250 horizontal lines of resolution planned for European HDTV screens.

PEOPLE

Norton Walltuch, a former broker for the now-defunct Conticommodity Services, reached a settlement with the Commodity Futures Trading Commission in connection with the agency's suit against Nelson and Bunker Hunt for manipulating the silver market in the early 1980s. Without admitting guilt, Walltuch agreed to pay a $100,000 fine.

William Atkinson, one of Apple Computer's leading scientists, has left the personal computer maker to form a new company with two other former employees. The new venture is General Magic Inc.

ODD LOTS

Centaur Partners filed suit against National Intergroup's board for their adoption of an anti-takeover provision. Centaur, which owns 16.5 percent of National Intergroup and is waging a proxy contest to gain control of the National Intergroup's board, was sued earlier by National Intergroup for alleged violation of securities laws.

Delta requested a federal mediator to help speed contract negotiations with its pilots, but union representatives rejected the step as an attempt at intimidation.

A federal jury resumed deliberations over 26 remaining felony counts against former Wall Street trader John A. Mulheren Jr. On Tuesday, Mulheren was found guilty of four counts of conspiracy and stock manipulation.