Word: bond
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Dates: during 1960-1969
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Welcome Sedation. In the rate-sensitive bond market, where tight money has pushed up the return to investors to a 40-year peak, prices jumped rapidly last week in the sharpest rally in years. Yields correspondingly fell. The return on face-value 41% U.S. Treasury long-term bonds, for example, dropped from 5.05% to 4.99% in one day, closed the week...
...Bond traders considered that a welcome sedation. Measured by the amount of new funds it consumes annually, the bond market is 20 times the size of the nation's stock markets. Expansion-minded businessmen, hungry for more loans than they can get from banks, have lately deluged bond dealers with offerings. Corporations have increased their publicly floated bond borrowing from $3.7 billion in the first eight months of 1965 to $5.5 billion so far this year. Such corporate issues rose to an alltime peak of $1.34 billion last month, close to four times the level of August a year...
...consequence, with the Federal Reserve putting strong brakes on the nation's money supply, bond interest rates soared so rapidly last month that one issue after another proved unsalable at its offering price. At the height of that pinch, investors even spurned half of a 61% issue by such a blue-chip utility as Southern California Edison, and American Telephone & Telegraph's new $250 million bond issue sold at a stunning 5qr% discount, thus offering a 5.96% return. That is the highest yield for any prime U.S. corporate bond since...
...Next Victim. Corporations can afford today's lofty interest rates. Many local governments feel that they cannot, even though municipal and state bonds enjoy a lower rate level because investors pay no federal income tax on their earnings. Nashville last week postponed a $25 million offer of sewer and water bonds, and Baltimore failed to obtain a single bid on a $31.8 million issue because the city set an interest limit of 41% - the equivalent of a 9% taxable investment for a man in the 50% income tax bracket. After housing, bond men forecast, civic improvements may well become...
...week's end, more than at any time in the recent past, the nation's stock and bond men seemed to be watching the baton of the maestro in the White House...