CREDIT : Bonds Still in the Doldrums Despite Rise in Value of Dollar

Bond prices turned in another uninspiring performance Tuesday, with market activity remaining stalled by the anticipation of important U.S. trade data.

The Treasury’s closely watched 30-year issue, which lost about 1/8 point, or $1.25 for every $1,000 in face amount on Monday, was unchanged in Tuesday’s trading. Its yield, which moves inversely to its price, was flat at 8.51%.

Most short-term Treasury bonds rose marginally, while longer-term issues were unchanged to slightly lower.

Analysts said the credit markets are still in a holding pattern awaiting the merchandise trade balance report for January set to be released Thursday.

Mitchell Held, chief financial economist for Smith Barney, Harris Upham & Co., noted that a rise in the dollar’s value against other major currencies, which normally would lift bond prices, didn’t have an effect. “That didn’t do anything, so here we sit,” he said.

In the secondary market for Treasury bonds, prices of short-term government issues edged up 1/32 point; intermediate maturities rose 1/32 point to 1/16 point, and 20-year issues were unchanged, according to Telerate Inc.

In corporate trading, industrials and utilities were unchanged in light trading, according to the investment firm of Salomon Bros.

In the municipal bond market, the bond buyer index of 40 actively traded general obligation and revenue bonds slipped 1/32 point to 89 13/32. The average yield rose to 8.06% from 8.05%.

Yields on three-month Treasury bills, meanwhile, fell 3 basis points to 5.61%. Six-month bills declined 2 basis points to 5.75% and one-year bills also lost 2 basis points, at 6.21%.

The federal funds rate, the interest on overnight loans between banks, was quoted at 6.50%, down from 6.675% Monday.