ROANOKE TIMES 

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, May 6, 1993                   TAG: 9305060147
SECTION: BUSINESS                    PAGE: B7   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

GOVERNMENT RESTRUCTURES BOND SALES

The government will sell fewer long-term bonds in an effort to reduce taxpayers' cost of financing the $4.1 trillion national debt, the Treasury Department said Wednesday.

After its refunding auctions next week, the department will reduce the amount of 30-year bonds and will sell them only twice a year, in August and February, rather than four times a year. It is eliminating sales of seven-year notes.

The news jolted the bond market, where Treasury issues are traded after the auctions. Prices plunged, then rose and fell again as traders sought to determine what effect the changes might have on the overall debt market.

Today, the Treasury will sell $8.25 billion in 30-year bonds and borrowing will be shifted to securities that mature in three years or less. The move will make the government vulnerable to an increase in rates that is almost sure to come as the economy improves, analysts said. - Associated Press 


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