Turnabout

For the first time since the Eisenhower Administration took office, the Treasury saw a chance last week to borrow money at cheaper interest rates. The opportunity was provided by a spectacular turnabout in the Government securities market, as investors briskly bid up prices, thus lowering proportionately the interest rate the Treasury will have to pay to finance new debts. For the first time since they were issued, the Government's new 3 1/4% 30-year bonds soared past 102, and 2 1/2% Victory Loan bonds went up to 93 30/32, their best price since April. The upturn in the short-term money market was even sharper.

The Treasury took quick advantage of the rise. An issue of two-year Treasury notes, priced last May to yield 2.16% to 2.47%, was withdrawn from sale. The Treasury will replace it with a new issue at lower interest rates "to reflect recent changes in the . . . market."

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