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Corporate

bonds surge

NEW YORK: US high-grade corrporate bonds ended higher in line with US Treasuries with most spreads unchanged, high-grades traders said on Thursday.

Speads on most corporate issues were unchanged.

"Corporate America has pretty much refinanced itself in recent years, so finance cmpanies aside there really isn't a lot to do," said a high-grades trader.

"If anything corporations are paying down debt. That said, if interest rates come down corporates will come back for some cheaper fixed income money," he added.

In new issues Ford Motor Co unit Associates Corp of North America issued $300 million in notes due Aug 15, 1998, said lead manager CS First Boston.

The notes have a coupon of 6.375 percent and were priced at 99.932 to yield 6.399 percent, or 28 basis points over comparable US Treasuries.

The noncallable notes are rated Aa3 by Moody's Investors Service and AA-minus by Standard & Poor's.

Bank of Montereal unit Harris Trust and Savings Bank issued $150 million of bank notes due August 29, 1996, said lead manager NationBanc Capital Markets.

The notes are noncallable for three months and have a 6.12 percent coupon. The notes priced at par and are rated AA2/AA-minus.

The junk bond market also had a fairly weak day, trading down an eighth to a quarter of a point, high-yield traders said.

Southland's five percent notes were one of the few winners in junk trading up about a quarter point, dealers said.

In the government market the 30-year long-bond traded up 1-7/32 at 100-24/32 to yield 6.82 percet.-Reuter