Treasury bond futures advanced strongly Monday on the Chicago Board of Trade, reflecting continuing doubts about OPEC's ability to raise oil prices and pessimism about the vigor of the U.S. economy.
Despite rather light trading most of the day, prices were up as much as 1 11/32 points with the June delivery at 103 22/32 points.
Prices approached the 104 level where they ran into resistance in recent weeks, noted Larry Morgan, an analyst in Chicago with Dean Witter Reynolds Inc.
Oil again was the focal point, with the imminent meeting of the Organization of Petroleum Exporting Countries and its attempt to lower production and raise prices.
"The feeling is still that OPEC has not been able to come up with a compromise" and won't accomplish anything at the meeting, said Jack Barbanel, an analyst in New York with Gruntal & Co.
Also, he said, traders are expecting the Federal Reserve to cut the discount rate within the next couple weeks.
Treasury bond settled 1 4/32 points to 1 9/32 points higher, with the contract for delivery in June at 103 22/32 points.