The spring thaw in interest rates last week showed signs of turning into a freshet of easier money. For the third week in a row, the average yield of 91-day Treasury bills dropped sharply, hit 3.03%, lowest since the 2.87% yield last May 25, and well below the record 4.67% just before Christmas. Other short-and long-term rates were also well down from their peaks.
"The market rates are forecasting a downturn in business, but this pessimism is unwarranted," said Norris Johnson, vice president of the First National City Bank of New York. Ralph Leach, vice president and treasurer of Morgan Guaranty Trust...
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