Word: bonde
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Dates: during 1950-1959
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...sick Government-bond market last week had its worst sinking spell. As prices of old issues hit new lows, their yields rose as high as 4.28%. exceeding the 4¼% ceiling on coupon rates the Government can set on new long-term bonds. Not since the hectic, tight-money days of early 1932 have yields risen so high. The sinking spell came at a particularly bad time for Treasury Secretary Robert B. Anderson; he needed $5.3 billion to carry the Government through June...
...setting a rate on a single issue of short-term securities, the Treasury this week will auction off $3.5 billion in such notes to see what the buyers will pay. Then it will set the rate on a $1.8 billion short-term issue. Anderson tried no long-term bond, simply because the Treasury can not get an interest rate high enough (i.e., above 4¼% ) to sell it. Publicly, the Treasury is keeping a stiff lip. Privately, it trembles...
Furthermore., the state-and local-government market for Government bonds is drying up. Once, most states specified that a large portion of their pension funds had to be invested in federal bonds. Today many permit them to be invested in higher-yielding corporate bonds. An even bigger Government market used to be insurance companies, mutual-savings banks, savings-and-loan associations and corporate pension funds. From 1952 through 1958, these institutions trimmed their federal-bond holdings from $23.9 billion to $20.6 billion, bypassed the Treasury entirely in putting more than $90 billion in non-Government investments...
...Treasury must even compete with other federally backed obligations to find customers-often coming off second best. Many investors who once insisted on a Government bond are now happy to buy a Government-guaranteed mortgage. Not only is the interest rate higher than what the Government pays on bonds, but the investor does not have to wait until maturity date to get his money back...
Vice Chairman C. Canby Balderston of the Federal Reserve Board warned the Philadelphia Bond Club that industrial prices have risen 2% since the recession low, sooner and more sharply than after the two last recessions, despite continued high unemployment and unused industrial capacity. The upsetting fact about this, said Balderston, is that the price level did not dip during the recession, perhaps because the downturn was so short. "The recent advances are piled on top of a level that never dropped down. When prices fail to decline during a recession, then they are in position to contribute to inflation during...