U.S. govt bonds close lower in New York on consumer confidence data, equities

NEW YORK (AFX) - U.S. government bond prices closed sharply lower in New York trade on a stronger-than-expected March consumer confidence data and a firm performance by the equity markets, dealers said. 	     At 3:26 pm, the 5-3/8 pct 30-year bond was down 1-7/32 at 98-28/32 yielding 5.449 pct, the 5 pct 10-year bond fell 1 to 100-1/32 yielding 4.987 pct and the 5 pct 2-year note was down 7/32 at 100-13/32 yielding 4.384 pct.	    The June bond future contract was down 1-9/32 at 104-4/32.	    Dealers said the investors covered stock prices on surprisingly strong consumer confidence data.	    Lehman Brothers economist Joseph Abate said: "The consumer confidence figures shocked the short end of the curve and has forced a reassessment of what the Fed might do next."	    Investors are looking for an inter-meeting federal funds rate cut. 	    He added that the bond market was "depressed in general." Consumer numbers continue to suggest that the economy is in better shape than traders previously believed. 	    Earlier, Lehman Brothers government bond trader Drew Matus said: "There were many rumours in the market saying the confidence number would be very soft." 	    U.S. March consumer confidence index was at 117.0 compared with the revised February figure of 109.2.	    Dealers said Federal Reserve Chairman Alan Greenspan's speech at the National Association of Business Economists early this morning had no effect on the markets.	    The Fed funds rate was at 5-1/16. 

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