JAPAN LONG-TERM PRIME SEEN CUT TO RECORD LOW SOON
Japan's long-term banks will soon cut
their prime rate, now at a record low 5.5 pct, by 0.2 or 0.3
percentage point in response to falling secondary market yields
on their five-year debentures, long-term bankers said.
    The long-term prime rate is customarily set 0.9 percentage
point above the coupon on five-year bank debentures issued by
the long-term banks every month.
    The latest bank debentures, at 4.6 pct, have met strong
end-investor demand on the prospect of further declines in yen
interest rates, dealers said. The current 5.5 pct prime rate
has been in effect since February 28.
 REUTER
