EUROBOND MARKET GENERALLY FIRMER WHERE CHANGED
Secondary sectors of the eurobond market,
where changed, were generally firmer in quiet morning trading
with attention again tending to focus on currencies other than
the dollar, dealers said.
    The sterling straight market opened with further gains of
1/8 or 1/4 point with sentiment boosted by the publication of
two more opinion polls showing the ruling Conservative Party
with a substantial lead over opposition parties.
    Dealers said operators seem a little more cautious this
morning since profit-taking is expected to emerge soon after
recent substantial gains.
    The dollar straight sector was little changed with
yesterday's gains on the U.S. Bond market being balanced out by
a slightly easier dollar. The market is now awaiting news which
may emerge from tomorrow's Group of Seven meeting in
Washington.
    "It's not often you can call the dollar straight sector a
backwater in the market but that's what it is at the moment," a
head trader at a U.S. Firm said.
    U.S. Treasury security trading was also quiet with retail
participation limited to enquiry, dealers said. The 30-year
long bond was quoted at 95-30/32 pct at 0845 GMT.
    The yen and Australian dollar sectors remained buoyant
although volume was lower than yesterday morning, dealers said.
Yen bonds were 1/4 to 3/8 point firmer with initial buying
coming from the Far East, dealers said.
    The market was boosted by a very firm Japanese bond market
in which the yield on the key 5.1 pct bond due 1996 dropped to
close at 3.905 pct compared with yesterday's close of 3.955
pct.
    In the Australian dollar market there was some retail
demand for zero coupon bonds, dealers said.
 REUTER
