11.   A separate government report also pointed to more sluggish economic activity Friday.

12.   A private report pointed to a slump in retail sales and government statistics showed that factory orders faltered in November.

13.   Bunds were also helped higher by rising U.S. Treasury bonds, which also advanced after reports pointed to slowing economic growth.

14.   But the three reports point to an eventual unraveling of the budget proposed by Giuliani andapproved by the City Council last month.

15.   Canadian stocks rose to records after bond yields spurred the banks higher when a U.S. economic report pointed to stable interest rates and higher corporate profit growth.

16.   Canadian stocks rose, led by BCE Inc. and Bank of Nova Scotia, after bond yields fell when a U.S. economic report pointed to stable interest rates.

17.   Government reports point to continued strength in the U.S. economy.

18.   He noted, however, that credit markets failed to surge because the factory-orders report also pointed toward moderate growth in the future.

19.   However, some analysts cautioned that recent reports point to a gradually recovering economy, which could weigh on bonds.

20.   In NEW YORK, U.S. stocks surged to records after a government jobs report pointed to stable or lower interest rates and higher corporate profits.