BANKING & FINANCE - Aug. 11, 1993

Another Drop in Savings Bond Sales: The government said sales of U.S. Savings Bonds fell 5.4% in July, the fifth decline in six months. Sales totaled $755 million, the lowest in 20 months. Sales reached $2.55 billion in January but have been slipping almost every month since because the Treasury Department decided to reduce the minimum guaranteed rate on the securities, effective March 1, from 6% to 4%. Savings Bonds held for five years or longer earn the minimum guaranteed rate or the average of market-based rates for the period, whichever is greater. The latest market-based rate, set May 1, is 4.78%.