NEW YORK — Bond prices tumbled Monday in mostly quiet trading, hammered by concern about inflation and the market's ability to absorb an influx of new government issues later in the week.
The Treasury's closely watched 30-year issue dropped nearly a point, or around $10 per every $1,000 in face value. Its yield, which moves inversely to its price, soared to 9.79% from 9.68% late Friday.
Corporate and municipal bonds declined point to 3/8 point.
Analysts said a surge in commodity prices rekindled bond investors' recent concern that inflation--a key enemy of the credit markets--could be heating up.
Gold bullion, for example, was quoted at $457.25 an ounce in late New York trading, up $2.75 from late Friday.
In the secondary market for Treasury issues, prices of short-term government issues declined 5/32 point to 5/16 point, intermediate maturities fell 11/32 point to 11/16 point, and 20-year issues lost 21/32 point, according to Salomon Bros.