Treasury-note yields rose. The government sold five-year notes at an average yield of 8.57 percent, up from 8.54 percent at the last auction on May 24 and the highest level in 15 months. The notes will carry a coupon interest rate of 8.5 percent. COMPANIES

Marriott's creditworthiness was affirmed by Standard & Poor's. S&P, which rates corporate and municipal creditors on their ability to pay back their debts, said the sale of Marriott's restaurant division and other assets will provide funds to reduce significantly its relative high level of debt in the next year.

IBM next week will unveil a new line of powerful mainframe computers that are expected to be its flagship product of the 1990s, an announcement analysts said will be the company's most important in years.

Lockheed unveiled its version of a fighter plane for the 21st century. Introduction of the YF-22 prototype followed the launch on Monday of Northrop's version. The designs are competing for a multibillion-dollar Air Force contract.

Laura Ashley Holdings of London will sell a 15 percent stake in the company to Aeon Group of Japan for $58.3 million. Laura Ashley will also sell 53 percent of its equity in its U.S. retailing subsidiary, Revman Industries, with Aeon taking 48 percent and Revman management 5 percent.

Caterair International completed refinancing of its $244 million bridge loan. Caterair was formed in 1989 by a management buyout of Marriott's airline catering division. COURTS

The Travel Committee Inc. and World Travel Inc., both of Owings Mills, Md., have been ordered to pay $2 million to Pan Am for booking seats and never paying for the tickets. A Baltimore County jury also ordered Pan Am to pay $500,000 to the Travel Committee because the airline breached an agreement with the agency and interfered in a contract with a Soviet airline.

The SEC said three men charged with insider trading in connection with a 1988 bid by MAI Basic Four to acquire Prime Computer have settled charges against them without admitting or denying any wrongdoing. The court complaint accused the three, who were MAI employees at the time, of buying Prime call options after learning that MAI was considering a takeover attempt.

Embezzlement charges were filed against 37 former bank and thrift employees from southern Florida financial institutions. The thefts allegedly occurred since October and ranged from $1,200 to $256,000. Almost half of the indictments returned by a federal grand jury involve former tellers. ACQUISITIONS

Legg Mason Inc. will acquire Latimer & Buck, First Fidelity Bancorp.'s mortgage banking unit. Sources said the price was $13 million.

Horn & Hardart agreed to sell its Bojangles' Chicken 'N Biscuits restaurant chain to a California investment firm in a deal valued at $20 million. INTERNATIONAL

Toyota, in an apparent indication that it intends to diversify away from cars, said it plans to triple the sales of its nonautomotive divisions by 1994. It also said earnings rose 27.4 percent in its latest fiscal year.

Volvo is eliminating 5,000 jobs this year and next because profits during the first six months of 1990 have declined by half. REGULATION

Refco, a Chicago futures brokerage, settled administrative charges of improper record-keeping and broker supervision and agreed to pay a $220,000 fine, the Commodity Futures Trading Commission announced. CONTRACTS

Ecology & Environment Inc. said it was awarded a two-year EPA contract that could amount to $111.3 million with a two-year optional extension and other options exercised. The company will provide the EPA with 2.6 million labor hours in oil and hazardous waste spill response, removal and prevention programs in the West.

AT&T won four communications contracts worth a total of about $100 million. They are with the Avis car rental system ($35 million), Caterpillar ($25 million), ITT ($38 million) and Textron (no value disclosed).

MCI Communications said it was awarded a three-year contract valued at $18 million to provide ITT with an 800-line service, private lines and other telecommunications services. PEOPLE

Roger Werner, who solidified ESPN's dominant role in cable television by acquiring rights to Major League Baseball and retaining the network's contract with the National Football League, resigned as president and CEO. He will become president and CEO of Prime Ventures Inc., a company being formed by Bill Daniels, who has interests in several regional cable networks.

Donald Trump said his shuttle airline will be able to offer passengers "next-gate connections" to Montreal and Toronto after signing Air Canada as a tenant in its La Guardia Airport terminal.