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Commodities : T-Bills, Lumber Prices Fall

March 31, 1987|From Associated Press

The plunging dollar sent shock waves into the futures markets Monday, forcing Treasury bonds and lumber prices sharply lower and silver higher.

On other markets, most grain and soybean futures advanced, pork futures were mostly lower while cattle were mixed and gasoline declined but other energy futures were higher.

"They certainly did a job on the bonds," said Jack Barbanel, an analyst in New York with Gruntal & Co.

Treasury bond futures plunged more than 2 points at the Chicago Board of Trade and the losses were trimmed only slightly before the close.

"It was a reaction to the continued appreciation of the Japanese yen and continued selling from last week," said J.R. Fredericks, an analyst in Chicago with E. David Stephens & Co.

The dollar hit historic lows against the yen last Friday and again on Monday.

The steep decline, compounded by the trade dispute between the United States and Japan, creates the fear that the Japanese may retaliate by pulling some money out of the American bond market or other investments, said Barbanel.

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