After reacting wildly to the first reports of the Soviet coup Monday, the Treasury market settled down yesterday to see how the situation develops, leaving prices to drift aimlessly in thin trading.

But traders said the political turmoil in the Soviet Union and expectations of an imminent Fed easing were keeping a good bid under the market, especially at the short end.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.