Advertisement
YOU ARE HERE: LAT HomeCollections

Interest-Rate Futures Fall

September 19, 1986|From Associated Press

Interest-rate futures retreated sharply Thursday, troubled by the weakening dollar and the growing belief that Germany and Japan are not going to cut their lending rates soon.

Treasury bond futures declined as much as 1 21/32 points on the Chicago Board of Trade.

In some other markets, oil futures moved higher, livestock and meat declined, wheat closed lower and other grains and soybeans were higher.

A combination of weaker dollar, disappointment on the interest rate, rumors about the Bank of America and technical market factors drove Treasury bond futures lower, said Joel Tillinghast, research director of BankAmerica Futures Inc.

Bonds were undercut from the very start with the U.S. dollar falling against all major currencies

"People are worried about the effect on foreign investors, that they might be deterred by the weaker dollar from buying U.S. bonds," Tillinghast said.

Further, the heads of the West German and Japanese central banks said they did not intend to change monetary policies, apparently ruling out a cut in interest rates.

Advertisement
Los Angeles Times Articles
|
|
|