Bank bonds rallied along with Treasuries after the government's successful auction of 30-year bonds. Barnett Banks Inc.'s 8.5% subordinated capital notes due in 1999 were bid at 8.65% Friday, down from 8.75% late Thursday. Similarly, Corestates Financial Corp.'s 9.625% subordinated notes due in 2001 were yielding 8.6% Friday, compared with 8.7% Thursday. And First Union Corp.'s 9.45% subordinated notes due in 1999 were bid at 8.9%, down from 9%.

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