January 24, 1998

Dollar Drop Roils Bonds, Sending Yields Up The dollar declined abruptly in global foreign-exchange trading yesterday, pulling bond prices sharply lower and sending the yield on the benchmark 30-year Treasury surging toward 6 percent, only a few weeks after it had touched a record low of 5.69 percent.

Angela Thompson, 26, one of 11 nonviolent drug offenders granted clemency by Gov George E Pataki, leaves New York State prison after eight years; retired State Supreme Court Justice Jerome W Marks, who prepared her clemency petition, greets her on release; had backing of trial judge, Juanita Bing Newton, who imposed lighter sentence that was overturned on appeal; photos (M)

Theodore J Kaczynski, the admitted Unabomber, remains to his brother, David, a person with a core of humanity whose horrible acts were caused by psychosis, but to Dr Charles Epstein, a pediatrics professor and geneticist who lost parts of three fingers in an Unabom attack, he is 'the essence of evil' and a coward whatever his mental state; Epstein says he has not greatly concerned himself with Kaczynski's punishment and has never felt that he has to be executed; no other case in years has so focused national attention on question of whether mental illness mitigates cruelty; photo (M)

The Chrysler Corporation reported fourth-quarter earnings today that were better than expected, but the numbers, particularly a sharp increase in rebates and other incentives, set Wall Street to worrying about the auto industry's prospects for this year. The cost of rebates and other incentives by Chrysler jumped 79.5 percent in the quarter, alarming analysts who expect other auto makers will also show increases in marketing costs.

THE WORLD WATCHES -- The sex scandal engulfing President Clinton is being greeted with dismay and bewilderment as it is avidly reported by television and newspapers around the world. Page A9.