FINANCIAL MARKETS : CREDIT : Bond Prices Drop for 4th Straight Day
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Bond prices retreated for the fourth consecutive session amid concerns about the market’s ability to absorb new government securities slated for auction and dim prospects for lower interest rates.
The Treasury’s benchmark 30-year bond lost 9/32 point, or nearly $2.75 for every $1,000 face amount, after losing about $17.50 in the past three sessions. Its yield, which rises when prices fall, edged up to 8.57% from 8.54% late Monday.
The market has been losing ground since last Thursday, the day before the government reported employment figures for June that were not as weak as many analysts had expected. The report dashed hopes that the Federal Reserve would take prompt steps to stimulate the economy by encouraging lower interest rates.
A continuing hefty slate of new bond offerings has also depressed prices.
The federal funds rate, the interest rate banks charge each other on overnight loans, was quoted at 8.313%, up from 8.25% on Monday.
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