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LOWER THAN EXPECTED UNEMPLOYMENT PROMPTS HEAVY TREASURY VOLUME

 NEW YORK, Jan. 7 /PRNewswire/ -- The total volume of all Treasury securities traded through dealers and executed through GovPX broker contributors reached $85,127 billion as of 3 p.m. EST on Friday, Jan. 7, 1994.
 Employment came in at an unexpectedly low increase of 183,000 where forecasts ranged from an increase of 225,000 to 300,000. As a result, the market viewed the likelihood of Fed tightening monetary policy and threat of inflation as being significantly reduced, causing yields to decline across the curve. The strongest reaction to the news was in the short end with volume for the 2-year active issue jumping to $6.730 billion and 5-year active to $8.461 billion. Len Santow, President of Griggs and Santow, stated that, "Typically when the employment number is announced, there is very high trading volume. Today's trading is particularly heavy because a lot of market professionals are putting money to use that has been invested short term during the last part of 1993."
 The average daily trade volume range for Treasury trading as reported through GovPX is approximately $62 billion. GovPX is owned by four interdealer brokers and 42 government securities dealers. It developed and delivers Prophesy, the only service to report 65 percent of brokered trades in the $4 trillion U.S. Treasury Market. GovPX receives price information from 39 Primary Dealers and four interdealer brokers.
 -0- 1/7/94
 /CONTACT: Alison Friedricks of GovPX, 212-693-1200/


CO: GovPX ST: New York IN: FIN SU: ECO

TW -- NY052 -- 0252 01/07/94 16:11 EST
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Publication:PR Newswire
Date:Jan 7, 1994
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