Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-08-02
TRADING IS BROAD
Y IN BOND MARKET
49, III Il
Interest Centers More in High
:. Yield and Speculative
=. Issues Today.
by CHARLES r. SPEARE.


Special Dispatch to The Star.
NEW YORK, August 2.-There was
a very broad market in bonds today.
Nearly every domestic group was
taken up and advanced fractionally
on a larger volume of trading than for
some time.
The competition with the stock mar
ket, which has held investment issues
hack, did not appear to be so keen.
While the high type Of mortgages
took part in the days movement. 1t
was in the more speculative and
higher-yield issues that interest CEN
tered.
This meant that industrials. Junior
rails and the convertible public utili
ties were most in favor. Not only
have they the advantage of returning
much more than the so-called institu-
tional bonds, but they also fiuctuate
with stocks. and in the present state
OF excited markets the holder has a
good prospect of adding to his princi-
pal as we'll as of receiving a high rate
of return relative to current money
rates.
American Writing Paper.
Among the strongest OF the indus.
trials were American Writing Paper
IS. above 30 for the first time; Kelly
Springfield SIS at Jos, compared with
1852 last week: General Motors AC-
ceptance 6s at new high of 1929;
Bethlehem Steel IS Of 1886 and 512s.
Goodyear IS. United States Rubber 5s
and International Paper Us. There
was a better tone also to the various
oil. iron and steel, metal and sugar
company bonds.
In the railroad group the features
were Chicago & Eastern Illinois 5s,
Cl,fro NNoStnrr1 fret dS tho
new Erie IS up to "a, the st. Paul 412s
and SIPS, which rose over a point, and
Chicago & Terre Haute income IS.
Improvement amounting to a quarter
to half point took place in such high
grade issues as Northern Pacific is,
Southern Pacific new 4i2s and Illinois
Central joint AIS.
Brooklyn Union Gas had much the
largest gain of the public utilities.
This amounted to over points. Hud-
son & Manhattan first 5s and income
5s again have come back into favor,
and were quoted at 100and 903s, re-
spectively.
Although the recent statement Of
the marlborough for the Il months
to June 80 showed interest on the
refunding SIS earned by a very large
margin, the political situation and
labor uncertainty disturbs investors.
The same is true of Brooklyn Man
haitian Transit 6s which hang around
their low level of the year. Milwau-
kee Electric SIS touched par. The
legal telephone issues are back in
some cases to within a fraction of
the best Of the year.
Trading I'm Foreigns Expands.
An expansion in trading in foreign
bonds was a phase of the general i'm
provement, though, while the average
Of domestic issues has advanced %
in the past week. only small recovery
has taken place in foreigns. Again
the French SIS, the French City 6s,
Seine rs and the French railroad 612s
and Is were all strong. Belgian a
were close to their high. Swiss IS
rose half point. A significant feature
was the strength in the South Amer
lean group including Chile SIS, PERU
Wan SIS. Brazilian 61as and Argentine
IS. Cuban SIS showed some recovery.
The new Central Bank of German
State IS were listed and dealt in quite
heavily at the offered price of 80.