The Weather Warms, Trees Grow Leaves, And Bond Yields Drop

After rising in the first four months of 1992, long-term bond yields are set to decline through the rest of the year, predicts economist Lacy H. Hunt of HongKong Bank Group. His reasons: persistent monetary weakness, a sharp slowdown in housing construction after the first-quarter surge in starts, drops in inflation-adjusted retail sales in March and April, and a continuing decline in real commercial bank lending.

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