Long-term Treasury prices fell last week as the nation's capital reverberated with politicians' calls for tax cuts, and analysts said the prospect of budget-busting legislation could cast a pall over the bond market for weeks to come.

The long bond had already taken a beating the week before last when the market got an unfriendly inflation number. And last week, the possibility that a federal tax cut could worsen inflationary pressures and add to the already abundant supply of Treasury securities banished the 30-year north of the 8% yield level.

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