Business: Bonded Trouble

The sick Government-bond market last week had its worst sinking spell. As prices of old issues hit new lows, their yields rose as high as 4.28%. exceeding the 4¼% ceiling on coupon rates the Government can set on new long-term bonds. Not since the hectic, tight-money days of early 1932 have yields risen so high. The sinking spell came at a particularly bad time for Treasury Secretary Robert B. Anderson; he needed $5.3 billion to carry the Government through June 30.

To get it, Anderson took an unorthodox step: instead of setting a rate on a single issue of short-term securities, the...

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