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Bureau of the Public Debt Announces Savings Bond Rates for May through October 1996

FOR IMMEDIATE RELEASE

May 1, 1996

The Bureau of the Public Debt today announced the market-based rates for U.S. Savings Bonds for May through October 1996.

SHORT-TERM SAVINGS BOND RATE 4.36 %

The 4.36 percent short-term rate is 85 percent of the average of six-month Treasury security yields for February through April 1996. A new rate is announced each May 1 and November 1. Series EE bonds issued on or after May 1, 1995, earn the short-term rates for semi-annual interest accrual periods beginning on or after each announcement date for the first five years.

LONG-TERM SAVINGS BOND RATE 4.85%

The 4.85 percent long-term rate is 85 percent of the average of five-year Treasury security yields for November 1995 through April 1996. Series EE bonds issued on or after May 1, 1995, earn long-term rates from five years through 17 years. Since none of the bonds issued under the new rate structure have been outstanding for five years, the long-term rate in this announcement will not be used and is provided only for reference.

FIVE YEAR TREASURY SECURITIES YIELD 5.70%

The average five-year Treasury securities yield applicable for earning periods from May through October 1996 period is 5.70 percent. In general, the market-based variable investment yield is 85 percent of the average of the average five-year Treasury security yields for the applicable six-month periods. Series EE bonds issued before May 1, 1995 along with Series E bonds and savings notes that have been outstanding for five years or longer and have not reached final maturity continue to earn market-based variable yields or their guaranteed minimum yields, whichever produces the greater value.

SERIES H AND HH BOND RATE 4.00%

Series H and HH bonds issued or entering an extended maturity period since March 1, 1993, pay interest semiannually at a fixed rate of 4 percent per annum.

MATURED SERIES E SAVINGS BONDS

Series E bonds issued May 1956 and earlier have reached final maturity and no longer earn interest. Bonds issued from June 1956 through October 1956 stop earning interest June 1, 1996 through October 1, 1996, or forty years from the issue date. Series E bonds issued December 1965 through May 1966 have reached their final maturity of 30 years and no longer earn interest. Bonds with issue dates of June 1966 through October 1966 stop earning interest June 1, 1996 through October 1, 1996 respectively.