Yields on CDs Fell in the Latest Week
NEW YORK -- Yields on most certificates of deposit offered by major banks dropped more than a tenth of a percentage point in the latest week, reflecting the overall decline in short-term interest rates.</br></br>On small-denomination, or "consumer," CDs sold directly by banks, the average yield on six-month deposits fell to 5.49% from 5.62% in the week ended yesterday, according to an 18-bank survey by Banxquote Money Markets, a Wilmington, Del., information service.</br></br>On three-month "consumer" deposits, the average yield sank to 5.29% from 5.42% the week before, according to Banxquote. Two banks in the Banxquote survey, Citibank in New York and CoreStates in Pennsylvania, are paying less than 5% on threemonth small-denomination CDs.</br></br>Declines were somewhat smaller on five-year consumer CDs, which eased to 7.37% from 7.45%, Banxquote said.</br></br>Yields on three-month and six-month Treasury bills sold at Monday's auction plummeted more than a fifth of a percentage point from the previous week, to 5.46% and 5.63%, respectively.