GERMAN BONDS END QUIET BOURSE LOWER
Prices of public authority bonds ended
a quiet bourse session lower, with domestic investors taking
profits in a technical reaction to recent strong gains.
    Dealers said long maturities dropped as much as 50 pfennigs
but most paper lost around 20 pfennigs. Foreigners, which had
been buying and selling West German public authority bonds in
pre-bourse business, remained sidelined during bourse trading.
    Today's slight dollar drop and yesterday's modest gains on
U.S. Credit markets had little impact. Dealers said this week's
G-7 meeting in Washington made investors wary and led to the
squaring of some positions.
    Most dealers said underlying sentiment for bonds remained
favourable and there were some speculations global interest
rates could fall further in the not too distant future.
    The Bundesbank bought 109.9 mln marks worth of public
authority paper here after selling 80.7 mln yesterday.
    The six pct 1997 federal government loan stock fell 40
pfennigs to 102.90, 103.15. The 5-3/4 pct 1997 bond for the
same address also shed 40 pfennigs to 100.90, 101.15.
    In contrast to the public authority bond sector, prices of
mortgage and municipal paper firmed in active business, dealers
said. 10-year yields fell two basis points to 6.26 pct.
    Market indicator prices for International Rubber Agreement.
All pence per kilo any origin cif Europe for May shipment.
 No.1 RSS 62.50
 No.3 RSS 57.00
 TSR 20   53.00
    Mark eurobond prices eased 1/8 point in thin trading, with
domestic and foreign investors remaining largely sidelined.
    The 5-1/2 pct 1992 East Asiatic bond was quoted unchanged
against yesterday at 98-1/4, 98-1/2. Ireland's 6-1/2 pct 1997
bond was steady at less 1-3/4, less 1-1/2.
    Syndication managers said one new issue could be launched
during the European afternoon.
    But primary activity was expected to remain subdued in
April. Only two or three further issues were expected during
the first half of the month. The second half is shortened by
the long Easter holiday weekend.
 REUTER
