Bond yields fall on news of trade gap

August 20, 1993|By Bloomberg Business News

U.S. bond yields, driven by another piece of news suggesting that the economy is hurting, fell to a record 6.18 percent before rebounding, the ninth straight day the record tumbled.

The closing yield was 6.21 percent, down four basis points.

Bonds were helped when the Commerce Department said the merchandise trade deficit widened to $12.1 billion for June. The gap was nearly 50 percent larger than expected, adding to investors' perception that the economy and inflation won't grow more than 3 percent this year.

"I'm not going to give up" on the rally, said Sheryl Durham, a portfolio manager at Glenmede Trust Co., who is not ruling out a move to 6 percent.

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