Bonds Unchanged to Slightly Lower

Bond prices were unchanged to slightly lower in mostly quiet trading Friday, capping a sluggish week in the credit markets.

The Treasury’s closely watched 30-year bond declined about 1/8 point, or $1.25 for every $1,000 in face value. That raised its yield to 7.52% from 7.51% Thursday. Prices of corporate and municipal issues were also weaker.

“The Treasury market is really in the doldrums,” said Maria Ramirez, an analyst for Drexel Burnham Lambert in New York “On the economic front, there’s no news at all.”

A lack of clear signals on the direction of the economy has kept bond prices within a narrow range for weeks. As long as the economy continues its weak but steady growth, many analysts and investors believe that the Federal Reserve is unlikely to encourage lower interest rates, which would mean higher bond prices.

Investors will be looking for economic signals next week from the government’s scheduled reports on consumer prices and durable goods orders for February, Ramirez noted.

Next week, the Treasury is set to auction $25 billion in two-year, four-year and seven-year notes.