1
 The bond market, 
5002
span

2
which sometimes thrives on bad news, 
1
elaboration-additional-e

3
cheered yesterday's stock market sell-off and perceptions 
5001
span

4
that the economy is growing weaker.
3
elaboration-object-attribute-e

5
 Early in the day, bonds rose modestly on economists' forecasts 
5004
span

6
that this week's slate of economic data will portray an economy 
5005
span

7
headed for trouble.
6
elaboration-object-attribute-e

8
 Such news is good for bonds 
5008
span

9
because economic weakness sometimes causes the Federal Reserve to lower interest rates in an effort 
5007
span

10
to stimulate the economy 
5006
List

11
and stave off a recession.
5006
List

12
 For example, today the Department of Commerce is scheduled to release the September durable goods report.
5013
span

13
 The consensus forecast of 14 economists 
5010
span

14
surveyed by Dow Jones Capital Markets Report 
13
elaboration-additional-e

15
is for a 1.2% drop in September orders.
5011
Same-Unit

16
 That would follow a 3.9% advance in August.
5011
temporal-after

17
 Bonds received a bigger boost later in the day 
5015
span

18
when stock prices moved broadly lower.
17
consequence-s

19
 The Dow Jones Industrial Average fell 26.23 points to 2662.91. 
5015
elaboration-general-specific

20
 Bond investors have been watching stocks closely, 
5017
span

21
said Joel Marver, chief fixed-income analyst at Technical Data Global Markets Group. 
20
attribution

22
When you get a big sell-off in equities,
5019
consequence-s

23
 money starts to shift into bonds,
5019
span

24
 which are considered safer,
23
elaboration-additional-e

25
 he said. 
5018
attribution

26
 The Treasury's benchmark 30-year bond ended about 1/2 point higher, or up about $5 for each $1,000 face amount, 
5024
Contrast

27
while the yield slid to 7.93% from 7.98% Friday. 
5024
Contrast

28
Municipals ended mixed, 
5025
Contrast

29
while mortgage-backed and investment-grade corporate bonds rose. 
5025
Contrast

30
Prices of high-yield, high-risk corporate securities ended unchanged. 
5026
List

31
 In more evidence of the growing division between good and bad junk bonds, a $150 million issue by Imo Industries Inc. was snapped up by investors 
5027
span

32
while underwriters for Beatrice Co. 's $350 million issue are considering restructuring the deal 
5028
span

33
to attract buyers. 
32
purpose

34
 In the Treasury market, analysts expect bond prices to trade in narrow ranges this week 
5030
span

35
as the market takes in positive and negative news. 
34
circumstance

36
 On the negative side, the market will be affected by constant supply in all sectors of the market, 
5031
span

37
said William M. Brachfeld, economist at Daiwa Securities America Inc.
36
attribution

38
 On the other hand, we have economic news 
5032
span

39
that is {expected to be} relatively positive for the bond market. 
38
elaboration-object-attribute-e

40
We will go back and forth with a tilt toward slightly lower yields, 
5034
span

41
he said. 
40
attribution

42
 Today, the Treasury will sell $10 billion of new two-year notes. 
5046
List

43
Tomorrow, Resolution Funding Corp., a division of a new government agency 
5038
span

44
created 
5037
span

45
to bail out the nation's troubled thrifts,
44
purpose

46
 will hold its first bond auction 
5039
span

47
at which it will sell $4.5 billion of 30-year bonds. 
46
elaboration-additional-e

48
 So far, money managers and other bond buyers haven't shown much interest in the Refcorp bonds.
5040
concession

49
 Analysts have mixed views about the two-year note auction. 
5044
span

50
While some say 
51
attribution

51
the auction should proceed smoothly, 
5041
span

52
others contend 
53
attribution

53
that yesterday's sale of $2.58 billion of asset-backed securities by Ford Motor Credit Corp. may have siphoned some potential institutional buyers from the government's note sale. 
5042
span

54
 The division of auto maker Ford Motor Co. made its debut in the asset-backed securities market with the second-largest issue in the market's four-year history. 
5057
span

55
The company offered securities 
5049
span

56
backed by automobile loans through an underwriting group 
5048
span

57
headed by First Boston Corp. 
56
elaboration-additional-e

58
 The issue yields 8.90% 
5050
List

59
and carries a guarantee 
5051
span

60
covering 9% of the deal from the company. 
59
elaboration-additional-e

61
First Boston sweetened the terms from the original yield estimate in an apparent effort 
5053
span

62
to place the huge offering. 
61
purpose

63
The issue was offered at a yield nearly one percentage point above the yield on two-year Treasurys. 
5054
span

64
 The only asset-backed deal larger than Ford's was a $4 billion offering by General Motors Acceptance Corp. in 1986. 
63
comparison

65
 Treasury Securities 
5156
TextualOrganization
SectionTitle
66
 Treasury bonds were 1/8 to 1/2 point higher yesterday in light trading. 
5075
span

67
 The benchmark 30-year bond ended at a price of 102 3/32, 
5063
span

68
compared with 101 17/32 Friday. 
67
comparison

69
The latest 10-year notes were quoted late at 100 17/32 
5064
span

70
to yield 7.90%, 
69
consequence-s

71
compared with 100 3/32 
5065
span

72
to yield 7.97%. 
71
consequence-s

73
The latest two-year notes were quoted late at 100 28/32 
5067
span

74
to yield 7.84%.
73
consequence-s

75
 Short-term rates rose yesterday at the government's weekly Treasury bill auction,
5069
span

76
 compared with the previous bill sale. 
75
comparison

77
 The Treasury sold $7.81 billion of three-month bills with an average discount rate of 7.52%, the highest since the average of 7.63% at the auction on Oct. 10. 
5071
Comparison

78
The $7.81 billion of six-month Treasury bills were sold with an average discount rate of 7.50%, the highest since the average of 7.60% at the Oct. 10 auction. 
5071
Comparison

79
 The rates were up from last week's auction,
5072
span

80
 when they were 7.37% and 7.42%, respectively. 
79
circumstance

81
 Here are auction details: 
5082
elaboration-general-specific

82
 Rates are determined by the difference between the purchase price and face value.
5077
Cause-Result

83
 Thus, higher bidding narrows the investor's return 
5076
Contrast

84
while lower bidding widens it. 
5076
Contrast

85
The percentage rates are calculated on a 360-day year,
5078
Comparison

86
 while the coupon-equivalent yield is based on a 365-day year. 
5078
Comparison

87
 Both issues are dated Oct. 26. 
5078
elaboration-additional

88
The 13-week bills mature Jan. 25, 1990,
5081
Comparison

89
 and the 26-week bills mature April 26, 1990. 
5081
Comparison

90
 Corporate Issues 
5157
TextualOrganization
SectionTitle
91
 Investment-grade corporates closed about 1/4 point higher in quiet trading. 
5094
span

92
 In the junk bond market, Imo Industries' issue of 12-year debentures, 
5084
span

93
considered to be one of the market's high-quality credits,
92
elaboration-additional-e

94
 was priced at par 
5085
Same-Unit

95
to yield 12%. 
5085
consequence-s

96
 Peter Karches, managing director at underwriter Morgan Stanley & Co., said 
97
attribution

97
the issue was oversubscribed. 
5087
span

98
It's a segmented market, 
5090
List

99
and 
5089
Same-Unit

100
if you have a good, strong credit, 
101
condition

101
people have an appetite for it, 
5088
span

102
he said. 
5090
attribution

103
Morgan Stanley is expected to price another junk bond deal, $350 million of senior subordinated debentures by Continental Cablevision Inc., next Tuesday. 
5103
List

104
 In light of the recent skittishness in the high-yield market, junk bond analysts and traders expect other high-yield deals to be sweetened or restructured 
5095
span

105
before they are offered to investors. 
104
temporal-before

106
 In the case of Beatrice, Salomon Brothers Inc. is considering restructuring the reset mechanism on the $200 million portion of the offering. 
5101
span

107
Under the originally contemplated terms of the offering, the notes would have been reset annually at a fixed spread above Treasurys. 
5099
Contrast

108
Under the new plan 
5096
span

109
being considered, 
108
elaboration-additional-e

110
the notes would reset annually at a rate 
5097
span

111
to maintain a market value of 101. 
110
purpose

112
Price talk calls for the reset notes to be priced at a yield of between 13 1/4% and 13 1/2%. 
5100
List

113
 Mortgage-Backed Securities 
5158
TextualOrganization
SectionTitle
114
 Activity in derivative markets was strong with four new real estate mortgage investment conduits announced and talk of several more deals in today's session. 
5107
span

115
 The Federal National Mortgage Association offered $1.2 billion of Remic securities in three issues, 
5106
List

116
and the Federal Home Loan Mortgage Corp. offered a $250 million Remic 
5105
span

117
backed by 9% 15-year securities. 
116
elaboration-additional-e

118
 Part of the reason for the heavy activity in derivative markets is that underwriters are repackaging mortgage securities 
5108
span

119
being sold by thrifts. 
118
elaboration-object-attribute-e

120
Traders said 
5109
attribution

121
thrifts have stepped up their mortgage securities sales 
5109
span

122
as the bond market has risen in the past two weeks. 
121
circumstance

123
 In the mortgage pass-through sector, active issues rose
5111
Contrast

124
 but trailed gains in the Treasury market. 
5111
Contrast

125
 Government National Mortgage Association 9% securities for November delivery were quoted late yesterday at 98 10/32, up 10/32; 
5112
List

126
and Freddie Mac 9% securities were at 97 1/2, up 1/4. 
5112
List

127
The Ginnie Mae 9% issue was yielding 8.36% to a 12-year average life assumption, 
5113
span

128
as the spread above the Treasury 10-year note widened slightly to 1.46 percentage points. 
127
circumstance

129
 Municipals 
5159
TextualOrganization
SectionTitle
130
 A $575 million San Antonio, Texas, electric and gas system revenue bond issue dominated the new issue sector. 
5136
span

131
 The refunding issue,
5121
span

132
 which had been in the wings for two months, 
131
elaboration-additional-e

133
was one of the chief offerings 
5124
span

134
overhanging the market
5123
List

135
 and limiting price appreciation. 
5123
List

136
But alleviating that overhang failed to stimulate much activity in the secondary market,
5125
span

137
 where prices were off 1/8 to up 3/8 point.
136
circumstance

138
 An official with lead underwriter First Boston said 
139
attribution

139
orders for the San Antonio bonds were on the slow side. 
5126
span

140
He attributed that to the issue's aggressive pricing and large size, as well as the general lethargy in the municipal marketplace.
5132
List

141
 In addition, 
5127
span

142
he noted, 
141
attribution-e

143
the issue would normally be the type 
5129
span

144
purchased by property and casualty insurers,
143
elaboration-object-attribute-e

145
 but recent disasters, such as Hurricane Hugo and the Northern California earthquake, have stretched insurers' resources
5130
Consequence

146
 and damped their demand for bonds. 
5130
Consequence

147
 A $137.6 million Maryland Stadium Authority sports facilities lease revenue bond issue appeared to be off to a good start. 
5140
span

148
The issue was oversubscribed 
5137
List

149
and doing very well, 
5137
List

150
according to an official with lead underwriter Morgan Stanley. 
5137
attribution

151
 Activity quieted in the New York City bond market, 
5139
span

152
where heavy investor selling last week drove yields on the issuer's full faith and credit backed bonds up as much as 0.50 percentage point. 
151
temporal-before

153
 Foreign Bonds 
5160
TextualOrganization
SectionTitle
154
 Japanese government bonds ended lower 
5142
span

155
after the dollar rose modestly against the yen. 
154
circumstance

156
 The turnaround in the dollar fueled bearish sentiment about Japan's bond market. 
5145
span

157
The benchmark No. 111 4.6% bond due 1998 ended on brokers' screens at a price of 95.39, off 0.28. 
5144
List

158
The yield rose to 5.38%. 
5144
List

159
West German bond prices ended lower after a day of aimless trading. 
5152
span

160
The benchmark 7% bond due October 1999 fell 0.20 point to 99.80 
5146
span

161
to yield 7.03%,
160
consequence-s

162
 while the 6 3/4% notes due July 1994 fell 0.10 to 97.65 
5147
span

163
to yield 7.34%. 
162
consequence-s

164
 British government bonds ended slightly higher in quiet trading 
5153
span

165
as investors looked ahead to today's British trade report. 
164
circumstance

166
The benchmark 11 3/4% Treasury bond due 2003/2007 rose 1/8 to 111 21/32 
5148
span

167
to yield 10.11%, 
166
consequence-s

168
while the 12% issue of 1995 rose 3/32 to 103 23/32 
5149
span

169
to yield 11.01%. 
168
consequence-s

5001
span
5003
Same-Unit

5002
span
5003
Same-Unit

5003
multinuc
5061
span

5004
span
5009
span

5005
span
5
elaboration-object-attribute-e

5006
multinuc
9
purpose

5007
span
8
explanation-argumentative

5008
span
5004
evaluation-s

5009
span
5014
span

5010
span
5011
Same-Unit

5011
multinuc
5012
span

5012
span
12
elaboration-general-specific

5013
span
5009
example

5014
span
5023
List

5015
span
5016
span

5016
span
5022
span

5017
span
5021
span

5018
span
5020
span

5019
span
5018
span

5020
span
5017
reason

5021
span
5016
explanation-argumentative

5022
span
5023
List

5023
multinuc
5029
span

5024
multinuc
5026
List

5025
multinuc
5026
List

5026
multinuc
5023
example

5027
span
5026
List

5028
span
31
circumstance

5029
span
5003
evidence

5030
span
5035
span

5031
span
5033
Contrast

5032
span
5033
Contrast

5033
multinuc
5030
elaboration-general-specific

5034
span
5035
elaboration-additional

5035
span
5036
span

5036
span
5047
circumstance

5037
span
43
elaboration-object-attribute-e

5038
span
5040
Same-Unit

5039
span
5040
Same-Unit

5040
multinuc
5045
span

5041
span
5043
Contrast

5042
span
5058
span

5043
multinuc
49
elaboration-general-specific

5044
span
5046
elaboration-general-specific

5045
span
5046
List

5046
multinuc
5047
span

5047
span
5059
span

5048
span
55
elaboration-additional-e

5049
span
5052
List

5050
multinuc
5052
List

5051
span
5050
List

5052
multinuc
5056
span

5053
span
5055
span

5054
span
5053
manner

5055
span
5052
evaluation-s

5056
span
54
elaboration-general-specific

5057
span
5042
elaboration-additional

5058
span
5043
Contrast

5059
span
5061
elaboration-additional

5060
span



5061
span
5062
span

5062
span
5161
TextualOrganization
SectionText
5063
span
5068
Comparison

5064
span
5066
span

5065
span
5064
comparison

5066
span
5068
Comparison

5067
span
5068
Comparison

5068
multinuc
5070
span

5069
span
5068
consequence-s

5070
span
5074
List

5071
multinuc
5073
span

5072
span
5071
consequence-s

5073
span
5074
List

5074
multinuc
66
consequence-n

5075
span
5156
TextualOrganization
SectionText
5076
multinuc
5077
Cause-Result

5077
multinuc
5080
span

5078
multinuc
5079
span

5079
span
5077
elaboration-additional

5080
span
5082
span

5081
multinuc
5080
elaboration-additional

5082
span
5083
span

5083
span
5156
TextualOrganization
Footnote
5084
span
5085
Same-Unit

5085
multinuc
5086
span

5086
span
5093
span

5087
span
5092
span

5088
span
5089
Same-Unit

5089
multinuc
5090
List

5090
multinuc
5091
span

5091
span
5087
result

5092
span
5086
explanation-argumentative

5093
span
5103
List

5094
span
5104
span

5095
span
5102
span

5096
span
5098
Same-Unit

5097
span
5100
List

5098
multinuc
5099
Contrast

5099
multinuc
106
elaboration-general-specific

5100
multinuc
5098
Same-Unit

5101
span
5095
example

5102
span
5094
elaboration-additional

5103
multinuc
91
example

5104
span
5157
TextualOrganization
SectionText
5105
span
5106
List

5106
multinuc
114
elaboration-general-specific

5107
span
5119
span

5108
span
5118
span

5109
span
5110
span

5110
span
5108
evidence

5111
multinuc
5116
span

5112
multinuc
5111
example

5113
span
5112
List

5114
span



5115
span



5116
span
5120
List

5117
span



5118
span
5107
explanation-argumentative

5119
span
5120
List

5120
multinuc
5158
TextualOrganization
SectionText
5121
span
5122
Same-Unit

5122
multinuc
5125
concession

5123
multinuc
133
elaboration-object-attribute-e

5124
span
5122
Same-Unit

5125
span
5134
span

5126
span
5133
span

5127
span
5128
Same-Unit

5128
multinuc
5131
Contrast

5129
span
5128
Same-Unit

5130
multinuc
5131
Contrast

5131
multinuc
5132
List

5132
multinuc
5126
cause

5133
span
5134
explanation-argumentative

5134
span
5135
span

5135
span
130
elaboration-additional

5136
span
5141
List

5137
multinuc
5138
span

5138
span
147
elaboration-additional

5139
span
5141
List

5140
span
5141
List

5141
multinuc
5159
TextualOrganization
SectionText
5142
span
5143
span

5143
span
5155
List

5144
multinuc
156
elaboration-general-specific

5145
span
5142
explanation-argumentative

5146
span
5151
Comparison

5147
span
5151
Comparison

5148
span
5150
Comparison

5149
span
5150
Comparison

5150
multinuc
5153
elaboration-general-specific

5151
multinuc
159
elaboration-general-specific

5152
span
5155
List

5153
span
5154
span

5154
span
5155
List

5155
multinuc
5160
TextualOrganization
SectionText
5156
multinuc
5161
TextualOrganization

5157
multinuc
5161
TextualOrganization

5158
multinuc
5161
TextualOrganization

5159
multinuc
5161
TextualOrganization

5160
multinuc
5161
TextualOrganization

5161
multinuc



5162
span



