Treasuries survive dollar woes unscathed.

WASHINGTON -- Treasury securities shrugged off a declining dollar and a stronger-than-expected August business inventory and sales report to end yesterday little changed from Friday.

The 30-year bond was quoted late yesterday up 2/32 at a price of 96 6/32 to yield 7.83%, unchanged from Friday's yield. The 10-year note was up 1/32 at a price of 97 1/32 with a 7.60% yield.

Meanwhile, yields on three- and six-month bills were little changed at 4.97% and 5.51%, respectively.

"The dollar got torn apart [yesterday]," said Peter McTeague, market strategist with MCM Money Watch-Boston. "A month ago, the bond market would have been torn apart as well."

Late yesterday, the dollar was trading as low as 1.4935 against the German mark, nearly a two-year low, and 97.25 against the Japanese yen, a three-month low.

The long bond was quoted down as much as 14/32 early in the day, but climbed back to where it started by late afternoon.

Last week's favorable inflation reports helped give the the market the needed confidence to weather the slide in the dollar, analysts said.

"I'm not surprised," said Wayne Schmidt, portfolio manager at MIMLIC Asset Management Co. "We didn't make anything last week to give back."

Treasury Market Yields Previous Previous Monday Week Month3-Month Bill 4.96 n.a. 4.696-Month Bill 5.49 n.a. 5.231-Year Bill 6.01 n.a. 5.772-Year Note 6.54 n.a. 6.363-Year Note 6.85 n.a. 6.665-Year Note 7.24 n.a. 7.097-Year Note 7.41 n.a. 7.3010-Year Note 7.59 n.a. 7.4730-Year Bond 7.81 n.a. 7.75

Source: Cantor, Fitzgerald / Telerate

Stats

Stock Market: The Dow Jones Industrial Average rose 13.46 points yesterday to close at 3923.93.

Foreign Exchange: In late New York trading yesterday, the dollar was quoted at 97.59 Japanese yen and 1.4982 German marks.

Commodities: The Commodity Research Bureau's index closed up 1.62 points yesterday at 229.88.

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