Interest on the notes for the first 10 years is adjusted quarterly at three-eighths percentage point above the London interbank offered rate, or Libor, for three-month deposits.

Numerous bank interest rates are therefore tied to LIBOR, particularly to the rate for three-month deposits.

A three-month deposit, you said?

In London, three-month deposits were unchanged at an offered rate of about 6 5/8 percent.

For example, one-month Eurodollar deposits were offered yesterday at 5 percent, while three-month deposits were 4 1/2 percent.

During the same period, three-month deposits in West German marks and Japanese yen have remain unchanged at 5 3/16 percent and 4 3/4 percent, respectively.

In London, the world's largest bank deposit market, three-month deposits were quoted at about 6 5/8 percent yesterday, up from 6.18 percent in the middle of August 1986.

And in the Eurodollar market, the world's largest wholesale deposit market, three-month deposits are 9 1/8 percent or 9 1/4 percent, up from 8 9/16 percent Aug. 11.

But on Jan. 2, interest rates on two-month and three-month deposits are expected to drop by about the same amount as they were increased by the special year-end concerns.

By Friday, three-month deposits had risen to 7 percent while the 10-year bond was at 6.4 percent.