Weaker-than-expected car sales in July supported the notion that the national economy is slowing and lifted Treasuries across the yield spectrum yesterday.
Economists, said the annualized selling rate for autos in July was 6.4 million units, well below the consensus forecast of 7 million. Wall Street observers embraced the news as evidense that the effects of higher interest rates and weaker consumer confidence have finally worked their way into the national economy. Lending further support to the bond market was the fact that the Treasury's refunding announcement contained no big surprises. The Treasury Department yesterday announced it would sell $40 billion of notes and bonds next week to raise about $10.4 billion in new cash and redeem $29.6 billion of securities maturing Aug. 16.