41.   Bonds could also get support as market participants buy cash bonds to deliver against the soon-to-expire September futures contract, traders said.

42.   Bonds fell overnight, dragged down by a decline in the dollar that sparked speculation international investors were abandoning dollar-denominated securities, traders said.

43.   Bonds held their gains after the report because the trade imbalance is expected to narrow amid a sagging U.S. economy and rebounds in non-U.S. markets, traders said.

44.   Bonds fell earlier after the Dow Jones wire service reported that Bank of Japan Gov. Yasuo Matsushita said long-term interest rates have bottomed out, traders said.

45.   Bonds were lifted earlier in the week by signs that interest rates could fall within the first half of the year, traders said.

46.   Bonds extended gains in mid-afternoon trading as the dollar dropped further against the yen, pulling down stocks, said a trader at Taiheiyo Securities Co.

47.   Bonds were also held back by concern that a wave of corporate bond issues may lead to a glut in the market, traders said.

48.   Bonds were not affected because the surplus did little to change the dollar-yen exchange rate, traders said.

49.   Bonds also benefited from optimism that President Bill Clinton and congressional Republicans will be able to reduce the federal budget deficit, traders said.

50.   Bonds also got a boost from a rebounding dollar, traders said.