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Corporate bonds up on

quiet trading

NEW YORK: US high-grade corporate bonds closed higher, tracking U.S. Treasuries on a very quiet day of trading, high-grades traders said on Monday.

Spreads on most issues were unchanged due to the lack of trading, traders said.

Time Warner was one of the few actively traded issues. A New York Times report that said Time Warner may be considering supporting a Turner Broadcasting bid for CBS caused Time Warner paper to tighten by about five basis points, traders said.

No high-grade issues priced today, traders added.

In the junk-bond market trading was equally dull with little paper changing hands, traders said.

Overall prices in the junk market were off about an eighth to a quarter point, high-yields traders said.

Pathmark was one of the few winners today, gaining about a point on talk the firm's financial picture is improving, traders said.

One new issue priced today. American Rice issued $100 million in senior mortgage notes due July 31, 2002, lead manager Jefferies & Co said.

The notes have a 13.00 percent coupon and priced at 94.00 to yield 14.39 percent. Non-callable for four years, the notes are rated B3 by Moody's Investors Service Inc and B-minus by Standard & Poor's Corp.

Sinclair Broadcasting is expected to price Tuesday a $300 million offering of ten-year senior subordinated notes, traders said.

Chase Securities is lead manger on the deal which has price talk of 9.75 to 10 percent, traders said.

The benchmark 30-year T-bond closed up 12/32 at 100-1/32 to yield 6.87 percent.-Reuter