Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-09
INVESTMENT BOND
MARKET IMPROVES
Easier Credit Conditions Aid
in Upward Tendency-U. S.
Group Advances.

special Dispatch TO Inc SIar.
NEW YORK, March s-Money rates
provided the impulse the past week for
the investment market. The lowering
Of the time money rate to 4a4A per
cent for short term and Az for periods
I'D to six months proved the best stimu-
liant bond prices have had in weeks.
Naturally, this movement, which was
paralleled by a reduction in bankers
bill rates and the lowering of the Bank
of England rate from Az to 4 per cent,
was expected to result in a cut Of the
New York Federal Reserve rediscount
rate to 31z per cent, but the rate was
not changed.
The volume of bond sales turned
sharply upward and in the last half OF
the week reached record proportions
for the year, with convertible bonds
providing an unusually small portion
of the total trading.
q. S. Group Strong.
The most emphatic upturn was in
high-grade securities, especially United
States Government obligations. The
long-term Governments were much in
favor because $450,000,000 of Treasury
certificates were offered at 3A per cent.
This compares with 31s per cent Sc
cured by the Treasury in its quarterly
financing In December. The eight
active long-term bonds averaged 103859
at the close of the week, compared with
their previous high levels of 1o3507 for
1880 and 1903 1872 for 1929.
At the same time, high-grade rail
bonds improved until the average price
Of 10 stood at 96.375 at the end of the
week, compared with their high of
970S5 and low of 94.s62 since the open
ing Of the year. Ten public utility
bonds advanced to 99.437, compared
with their high Of 100.05 and low
of 97.85.
The weeks political developments
abroad, where some degree of optimism
for the eventual success of the Naval
Conference returned, combined with
strength to foreign dollar credits. A
group of these ended the week with an
average Of 1919, compared with their
1880 high Of 102.5 and low of 99.7.
New Offerings.
In other ways it was a good week
for the senior market. The amount of
new offerings totaled about 500, 000, 900,
compared with $65, ABS. 900 last week
and $e6, 452 900 two weeks ago. The
increase does not bring the weekly total
of offerings to the proportions reached
in January and early February, which
gives the market a chance to digest
some of the new issues.
There was less than 100000 of
municipalities brought out in the week
and with the cheapening of money rates
dealers found themselves able to mark
up the prices of unabSorbed issues.
The largest single issue put out was
for 100000 American and Foreign
Power per cent debentureS. In &C
cordance with the policy of other Elec-
trio Bond and Share debentureS, the
term was set at 100 years. The public
offering price was 90. 1t was the larg-
est piece of financing in the power and
light field since the beginning OF the
year.
Australian Loan.
An interesting f1otation was $5,000,-
900 City of Sydney, N. S. W., 5l2s. This
Is the first time Sydney has borrowed
In this market, although some of the
Australian states have loans outstand-
ing here. The bonds were offered at
80. A new South Wales issue OF S
per cents put out here in 1927 at 9614
is currently quoted around IS, compared
with the best price for the year of 90.
(COpyrlght, 1901