Banks continued on Thursday to take advantage of low yields in the credit market.

A $500 million issue of Pittsburgh National Bank notes, due Aug. 6, 1993, was assigned a coupon of 31/#% and priced at 99.962 to yield 3.66% initially.

The notes will be reoffered at various prices through Merrill Lynch & Co. The noncallable issue was priced at a spread of 11 basis points above the Treasury's one-year bill.

The deal is rated Aa3 by Moody's and A-plus by Standard & Poor's. The bank is a unit of PNC Financial Corp.

Mellon Issues Notes

In addition, a $ 100 million issue of Mellon Financial Co. senior notes, due Aug. 1, 1995, was priced at par to yield 5.375%. The noncallable issue was priced at a spread of 66 basis points above the Treasury's three-year note.

Rated Baa 1 by Moody's Investors Service Inc. and A-minus by Standard & Poor's Corp., the issue will be sold through underwriters led by Morgan Stanley & Co. The company is a unit of Mellon Bank Corp.

Fleet Files Shelf Offer

Fleet Financial Group Inc., Providence, R.I., filed with the Securities and Exchange Commission for a shelf offering of up to $750 million of debt securities and warrants. Fleet said proceeds would mainly be used to extend credit to or fund investments in subsidiaries.

Separately, Standard & Poor's Corp. affirmed debt ratings of Bank of Boston Corp., citing improved core profitability and the issuance of $147 million in common stock in the second quarter.

Senior debt is rated BBB-minus, subordinated debt BB-plus preferred stock BB, and commercial paper A3.

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