|
Bond buoyed by dollar
|
 |
November 23, 1998: 9:51 a.m. ET
New Yeltsin ills, Iraq tensions lift U.S. currency; 30-year bond tags along
|
NEW YORK (CNNfn) - U.S. Treasurys rode higher Monday on the back of a strong dollar, as investors rushed to the currency amid new signs of instability in Russia and simmering tensions between U.N. leaders and Iraq.
At around 9:30 a.m. ET, the 30-year benchmark Treasury issue was up 16/32 in price to 100-30/32 as the yield, which moves inversely, dropped to 5.18 percent.
The bond's focus was overseas Monday, despite early signs of a rally on Wall Street. Stock market gains have recently drawn much investor attention away from bonds.
The dollar rose to new 10-week highs against Germany's mark, crossing the key 170 level on concern about the health of Russian President Boris Yeltsin, who is recovering from pneumonia.
"He's viewed as a balancing force, so any signs of sickness is helpful to the dollar," John Krey, currency analyst at MMS International, said. Russia is a key German debtor.
The U.S. currency was recently quoted at 1.7073 marks, up more than 1-1/2 pfennigs. That came despite a continued belief among many traders the Bundesbank isn't likely to lower interest rates in Germany.
Press reports also said renewed tension between the United Nations and Iraq over the continuation of arms inspections in that Persian Gulf nation boosted the dollar. The dollar is often a safety valve for investors in times of economic and political instability.
The dollar also rallied against the Japanese yen as discord cropped up between political leaders there on prospects of economic reforms.
The dollar fetched 121.31 yen early Monday in U.S. trading.
|
|
|
|
|
 |
|
