950812

Corporate

bonds end

with losses

NEW YORK: US high-grade corporate bond prices sank with US Treasuries at day's end while spreads tightened by a couple of basis points, high-grades traders said on Friday.

"The bottom just dropped following the government market," said one high-grades trader. "But it's technical. The fundamentals look pretty good."

The market gyrated throughout the day, opening higher on the inflation and retail sales data and selling off by midday.

In the governments market, the new 30-year long-bond closed down 1-4/32 at 98-22/32 to yield 6.98 percent.

In the junk bonds market, prices closed off about a half a point across the board, high-yields traders said, while volume remained moderate.

"Volume picked up here today due to volume in the equity and bond markets," said one junk bonds trader. "The feeling is that we'll snap back on Monday."

There were no new issues in either the corporate or junk bonds market today, but traders said activity could pick up in bonds market today, but traders said activity could pick up in the next week.-Reuter