1
 The bond market, 
5001
span

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

3
cheered yesterday's stock market sell-off and perceptions 
5003
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 headed for trouble.
5
elaboration-object-attribute-e

7
 Such news is good for bonds
5007
interpretation-n

8
 because economic weakness sometimes causes the Federal Reserve to lower interest rates in an effort
5007
span

9
 to stimulate the economy 
5008
List

10
and stave off a recession.
5008
List

11
 For example, today the Department of Commerce is scheduled to release the September durable goods report.
5011
span

12
 The consensus forecast of 14 economists
5012
span

13
 surveyed by Dow Jones Capital Markets Report 
12
elaboration-additional-e

14
is for a 1.2% drop in September orders.
5013
Same-Unit

15
 That would follow a 3.9% advance in August.
5013
circumstance

16
 Bonds received a bigger boost later in the day 
5016
span

17
when stock prices moved broadly lower.
16
circumstance

18
 The Dow Jones Industrial Average fell 26.23 points to 2662.91.
5016
elaboration-general-specific

19
 Bond investors have been watching stocks closely,
5019
span

20
 said Joel Marver, chief fixed-income analyst at Technical Data Global Markets Group.
19
attribution

21
 When you get a big sell-off in equities,
5022
circumstance

22
 money starts to shift into bonds,
5022
span

23
 which are considered safer,
22
elaboration-additional-e

24
 he said.
5021
attribution

25
 The Treasury's benchmark 30-year bond ended about 1/2 point higher, or up about $5 for each $1,000 face amount,
5026
Contrast

26
 while the yield slid to 7.93% from 7.98% Friday.
5026
Contrast

27
 Municipals ended mixed, 
5028
List

28
while mortgage-backed and investment-grade corporate bonds rose.
5028
List

29
 Prices of high-yield, high-risk corporate securities ended unchanged.
5027
List

30
 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
5029
Contrast

31
 while underwriters for Beatrice Co. 's $350 million issue are considering restructuring the deal
5030
span

32
 to attract buyers. 
31
purpose

33
 In the Treasury market, analysts expect bond prices to trade in narrow ranges this week 
5031
span

34
as the market takes in positive and negative news.
33
circumstance

35
 On the negative side, the market will be affected by constant supply in all sectors of the market, 
5033
span

36
said William M. Brachfeld, economist at Daiwa Securities America Inc.
35
attribution

37
 On the other hand, we have economic news
5035
span

38
 that is {expected to be} relatively positive for the bond market.
37
elaboration-object-attribute-e

39
 We will go back and forth with a tilt toward slightly lower yields, 
5037
span

40
he said.
39
attribution

41
 Today, the Treasury will sell $10 billion of new two-year notes.
5027
List

42
 Tomorrow, Resolution Funding Corp., a division of a new government agency 
5038
span

43
created 
5039
span

44
to bail out the nation's troubled thrifts, 
43
purpose

45
will hold its first bond auction 
5041
span

46
at which it will sell $4.5 billion of 30-year bonds.
45
elaboration-object-attribute-e

47
 So far, money managers and other bond buyers haven't shown much interest in the Refcorp bonds.
5040
elaboration-additional

48
 Analysts have mixed views about the two-year note auction.
5044
span

49
 While some say 
50
attribution

50
the auction should proceed smoothly,
5045
span

51
 others contend 
52
attribution

52
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. 
5047
span

53
 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.
5048
span

54
 The company offered securities 
5049
span

55
backed by automobile loans through an underwriting group
5050
span

56
 headed by First Boston Corp.
55
elaboration-additional-e

57
 The issue yields 8.90% 
5052
List

58
and carries a guarantee 
5053
span

59
covering 9% of the deal from the company. 
58
elaboration-additional-e

60
First Boston sweetened the terms from the original yield estimate in an apparent effort
5055
span

61
 to place the huge offering.
60
elaboration-object-attribute-e

62
 The issue was offered at a yield nearly one percentage point above the yield on two-year Treasurys.
5048
elaboration-additional

63
 The only asset-backed deal larger than Ford's was a $4 billion offering by General Motors Acceptance Corp. in 1986.
5056
comparison

64
 Treasury Securities 
5058
TextualOrganization
SectionTitle
65
 Treasury bonds were 1/8 to 1/2 point higher yesterday in light trading.
5059
span
SectionText
66
 The benchmark 30-year bond ended at a price of 102 3/32,
5060
Comparison

67
 compared with 101 17/32 Friday.
5060
Comparison

68
 The latest 10-year notes were quoted late at 100 17/32
5062
span

69
 to yield 7.90%,
68
consequence-s

70
 compared with 100 3/32 
5064
span

71
to yield 7.97%.
70
consequence-s

72
 The latest two-year notes were quoted late at 100 28/32 
5066
span

73
to yield 7.84%.
72
consequence-s

74
 Short-term rates rose yesterday at the government's weekly Treasury bill auction,
5067
Comparison

75
 compared with the previous bill sale.
5067
Comparison

76
 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.
5061
List

77
 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.
5061
List

78
 The rates were up from last week's auction,
5069
Comparison

79
 when they were 7.37% and 7.42%, respectively.
5069
Comparison

80
 Here are auction details: 
5071
span

81
 Rates are determined by the difference between the purchase price and face value.
5072
span

82
 Thus, higher bidding narrows the investor's return
5073
Contrast

83
 while lower bidding widens it. 
5073
Contrast

84
The percentage rates are calculated on a 360-day year,
5075
Contrast

85
 while the coupon-equivalent yield is based on a 365-day year.
5075
Contrast

86
 Both issues are dated Oct. 26. 
5077
span

87
The 13-week bills mature Jan. 25, 1990,
5078
Comparison

88
 and the 26-week bills mature April 26, 1990.
5078
Comparison

89
 Corporate Issues 
5080
TextualOrganization
SectionTitle
90
 Investment-grade corporates closed about 1/4 point higher in quiet trading. 
5081
List
SectionText
91
 In the junk bond market, Imo Industries' issue of 12-year debentures,
5082
span

92
 considered to be one of the market's high-quality credits,
91
elaboration-additional-e

93
 was priced at par to yield 12%.
5083
Same-Unit

94
 Peter Karches, managing director at underwriter Morgan Stanley & Co., said 
95
attribution

95
the issue was oversubscribed.
5085
span

96
 It's a segmented market,
5089
circumstance

97
 and 
5089
Same-Unit

98
if you have a good, strong credit,
99
condition-e

99
 people have an appetite for it, 
5152
span

100
he said. 
5087
attribution

101
Morgan Stanley is expected to price another junk bond deal, $350 million of senior subordinated debentures by Continental Cablevision Inc., next Tuesday.
5084
elaboration-additional

102
 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 
103
condition

103
before they are offered to investors.
5093
span

104
 In the case of Beatrice, Salomon Brothers Inc. is considering restructuring the reset mechanism on the $200 million portion of the offering.
5093
example

105
 Under the originally contemplated terms of the offering, the notes would have been reset annually at a fixed spread above Treasurys.
5096
Comparison

106
 Under the new plan 
5097
span

107
being considered,
106
elaboration-object-attribute-e

108
 the notes would reset annually at a rate 
5098
Same-Unit

109
to maintain a market value of 101.
5153
Consequence

110
 Price talk calls for the reset notes to be priced at a yield of between 13 1/4% and 13 1/2%. 
5153
elaboration-additional

111
 Mortgage-Backed Securities 
5101
TextualOrganization
SectionTitle
112
 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. 
5102
span
SectionText
113
 The Federal National Mortgage Association offered $1.2 billion of Remic securities in three issues,
5103
List

114
 and the Federal Home Loan Mortgage Corp. offered a $250 million Remic 
5104
span

115
backed by 9% 15-year securities.
114
elaboration-object-attribute-e

116
 Part of the reason for the heavy activity in derivative markets is that underwriters are repackaging mortgage securities
5106
span

117
 being sold by thrifts.
116
elaboration-object-attribute-e

118
 Traders said 
119
attribution

119
thrifts have stepped up their mortgage securities sales 
5108
span

120
as the bond market has risen in the past two weeks.
5108
circumstance

121
 In the mortgage pass-through sector, active issues rose 
5111
Comparison

122
but trailed gains in the Treasury market.
5111
Comparison

123
 Government National Mortgage Association 9% securities for November delivery were quoted late yesterday at 98 10/32, up 10/32; 
5113
List

124
and Freddie Mac 9% securities were at 97 1/2, up 1/4.
5113
List

125
 The Ginnie Mae 9% issue was yielding 8.36% to a 12-year average life assumption,
5115
List

126
 as the spread above the Treasury 10-year note widened slightly to 1.46 percentage points.
5115
List

127
 Municipals 
5116
Topic-Drift
SectionTitle
128
 A $575 million San Antonio, Texas, electric and gas system revenue bond issue dominated the new issue sector.
5117
span
SectionText
129
 The refunding issue,
5154
span

130
 which had been in the wings for two months,
129
elaboration-additional-e

131
 was one of the chief offerings
5120
span

132
 overhanging the market
5121
List

133
 and limiting price appreciation.
5121
List

134
 But alleviating that overhang failed to stimulate much activity in the secondary market,
5123
span

135
 where prices were off 1/8 to up 3/8 point.
134
elaboration-additional-e

136
 An official with lead underwriter First Boston said 
137
attribution

137
orders for the San Antonio bonds were on the slow side.
5124
span

138
 He attributed that to the issue's aggressive pricing and large size, as well as the general lethargy in the municipal marketplace.
5126
List

139
 In addition,
5155
span

140
 he noted, 
139
attribution-e

141
the issue would normally be the type
5129
span

142
 purchased by property and casualty insurers,
141
elaboration-object-attribute-e

143
 but recent disasters, such as Hurricane Hugo and the Northern California earthquake, have stretched insurers' resources
5131
List

144
 and damped their demand for bonds.
5131
List

145
 A $137.6 million Maryland Stadium Authority sports facilities lease revenue bond issue appeared to be off to a good start.
5133
span

146
 The issue was oversubscribed 
5134
List

147
and doing very well, 
5134
List

148
according to an official with lead underwriter Morgan Stanley. 
5134
attribution

149
 Activity quieted in the New York City bond market,
5136
span

150
 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.
149
circumstance

151
 Foreign Bonds 
5137
TextualOrganization
SectionTitle
152
 Japanese government bonds ended lower 
5138
span
SectionText
153
after the dollar rose modestly against the yen.
5139
span

154
 The turnaround in the dollar fueled bearish sentiment about Japan's bond market.
153
explanation-argumentative

155
 The benchmark No. 111 4.6% bond due 1998 ended on brokers' screens at a price of 95.39, off 0.28.
5141
span

156
 The yield rose to 5.38%.
155
elaboration-additional

157
 West German bond prices ended lower after a day of aimless trading.
5143
span

158
 The benchmark 7% bond due October 1999 fell 0.20 point to 99.80 
5144
span

159
to yield 7.03%, 
158
consequence-s

160
while the 6 3/4% notes due July 1994 fell 0.10 to 97.65 
5146
span

161
to yield 7.34%.
160
consequence-s

162
 British government bonds ended slightly higher in quiet trading 
5147
Temporal-Same-Time

163
as investors looked ahead to today's British trade report.
5147
Temporal-Same-Time

164
 The benchmark 11 3/4% Treasury bond due 2003/2007 rose 1/8 to 111 21/32
5149
span

165
 to yield 10.11%,
164
consequence-s

166
 while the 12% issue of 1995 rose 3/32 to 103 23/32
5151
span

167
 to yield 11.01%.
166
consequence-s

5001
span
5002
Same-Unit

5002
multinuc
5024
summary-s

5003
span
5002
Same-Unit

5004
span
5005
span

5005
span
5010
span

5006
span
5004
evaluation-s

5007
span
5006
span

5008
multinuc
8
elaboration-object-attribute-e

5009
span



5010
span
5015
Sequence

5011
span
5005
example

5012
span
5013
Same-Unit

5013
multinuc
5014
span

5014
span
11
elaboration-additional

5015
multinuc
5024
Topic-Drift

5016
span
5017
span

5017
span
5018
span

5018
span
5015
Sequence

5019
span
5020
List

5020
multinuc
5017
elaboration-additional

5021
span
5023
span

5022
span
5021
span

5023
span
5020
List

5024
multinuc
5025
span

5025
span



5026
multinuc
5027
List

5027
multinuc
5024
Topic-Drift

5028
multinuc
5027
List

5029
multinuc
5027
List

5030
span
5029
Contrast

5031
span
5032
span

5032
span
5027
List

5033
span
5034
Contrast

5034
multinuc
5031
evaluation-s

5035
span
5036
List

5036
multinuc
5034
Contrast

5037
span
5036
List

5038
span
5040
Same-Unit

5039
span
42
elaboration-object-attribute-e

5040
multinuc
5042
span

5041
span
5040
Same-Unit

5042
span
5043
span

5043
span
5027
List

5044
span
5042
evaluation-s

5045
span
5046
Contrast

5046
multinuc
48
elaboration-additional

5047
span
5046
Contrast

5048
span
5056
span

5049
span
5051
span

5050
span
54
elaboration-object-attribute-e

5051
span
53
elaboration-additional

5052
multinuc
5054
span

5053
span
5052
List

5054
span
5049
elaboration-additional

5055
span
5052
elaboration-additional

5056
span
5057
span

5057
span
5027
List

5058
multinuc
5079
TextualOrganization

5059
span
5058
TextualOrganization

5060
multinuc
5061
List

5061
multinuc
5068
span

5062
span
5063
Comparison

5063
multinuc
5065
List

5064
span
5063
Comparison

5065
multinuc
5061
List

5066
span
5065
List

5067
multinuc
5061
List

5068
span
5070
span

5069
multinuc
5061
elaboration-additional

5070
span
65
elaboration-additional

5071
span
5068
elaboration-additional

5072
span
5076
List

5073
multinuc
81
interpretation-s

5074
span



5075
multinuc
5076
List

5076
multinuc
80
example

5077
span
5076
List

5078
multinuc
86
elaboration-additional

5079
multinuc
5024
Topic-Drift

5080
multinuc
5079
TextualOrganization

5081
multinuc
5080
TextualOrganization

5082
span
5083
Same-Unit

5083
multinuc
5084
span

5084
span
5091
span

5085
span
5086
span

5086
span
5083
elaboration-additional

5087
span
5090
span

5088
span



5089
multinuc
5087
span

5090
span
5085
explanation-argumentative

5091
span
5092
span

5092
span
5081
List

5093
span
5094
span

5094
span
5095
span

5095
span
5091
elaboration-additional

5096
multinuc
5094
circumstance

5097
span
5098
Same-Unit

5098
multinuc
5153
Consequence

5099
span



5100
span
5096
Comparison

5101
multinuc
5079
TextualOrganization

5102
span
5110
span

5103
multinuc
5105
span

5104
span
5103
List

5105
span
112
example

5106
span
5107
List

5107
multinuc
5103
explanation-argumentative

5108
span
5109
span

5109
span
5107
List

5110
span
5101
TextualOrganization

5111
multinuc
5112
List

5112
multinuc
5102
elaboration-additional

5113
multinuc
5114
span

5114
span
5112
List

5115
multinuc
5113
elaboration-additional

5116
multinuc
5079
TextualOrganization

5117
span
5132
Topic-Drift
SectionText
5118
span



5119
multinuc
5123
concession

5120
span
5119
Same-Unit

5121
multinuc
131
elaboration-object-attribute-e

5122
span
128
elaboration-additional

5123
span
5122
span

5124
span
5125
span

5125
span
5123
explanation-argumentative

5126
multinuc
5124
elaboration-additional

5127
span



5128
multinuc
5126
List

5129
span
5131
concession

5130
span
5128
Same-Unit

5131
multinuc
5130
span

5132
multinuc
5116
Topic-Drift

5133
span
5132
Topic-Drift

5134
multinuc
5135
span

5135
span
145
elaboration-additional

5136
span
5132
Topic-Drift

5137
multinuc
5079
TextualOrganization

5138
span
5140
span

5139
span
152
circumstance

5140
span
5142
Topic-Drift

5141
span
5138
elaboration-additional

5142
multinuc
5137
TextualOrganization

5143
span
5142
Topic-Drift

5144
span
5145
List

5145
multinuc
157
elaboration-additional

5146
span
5145
List

5147
multinuc
5148
span

5148
span
5142
Topic-Drift

5149
span
5150
List

5150
multinuc
5147
elaboration-additional

5151
span
5150
List

5152
span
5089
Same-Unit

5153
multinuc
5100
span

5154
span
5119
Same-Unit

5155
span
5128
Same-Unit

