U.S. Treasury Bonds Hold Steady as Gold Prices Continue Their Slide
Prices of government bonds were steady on Monday in response to falling gold prices and expectations of more weak economic news.
At 4 p.m. in New York, the price of the Treasury's 30-year bond was up 1/8 and the yield was unchanged at 5.87%.
Stocks moved higher on the strength in bonds and the signing of the Middle East accord. The dollar advanced.
"The continued slide of gold and expectations of more soft economic data provided a lift to the bond market," said Douglas Schindewolf, economist at Smith Barney Shearson Inc.
Gold prices, which had been on the upswing for most of the summer, have come down sharply in recent weeks amid diminishing inflation. Gold is a traditional hedge against inflation.
On Monday on the New York Commodities Exchange. the October gold futures contract was quoted at $343.10 an ounce, down $7.60.
Inflation Index Down
The most recent good news on inflation came Friday with the government's report that the Producer Price Index fell 0. …