Prices of long-term Government securities fell sharply yesterday, with investors nervous over the inflationary implications of continuing economic growth.

Gold was also supported by the dollar's weakness and the inflationary implications of generally higher commodity prices yesterday.

Food must escape this time, even at a lower rate, given the inflationary implications of levying a tax - not to mention the political sensitivities involved.

A. There may be some worry about Y2K and perhaps some worries about the inflationary implications of a weaker dollar.

Bond traders often do not like the inflationary implications of a drop in the discount rate, and respond by selling long-term securities.

The credit markets ignored data signaling economic growth, which would normally have knocked prices lower and yields higher because of the inflationary implications.

The inflationary implications of higher rates creates a strong incentive to invest in precious metals.

A prolonged rise in oil prices, coming just before the peak of the summer driving season, would have broad inflationary implications, analysts said.

Although short-term interest rates fell after the Fed's last move, bond traders, fearful of the inflationary implications, pushed up long-term bond yields.

Traders said the market started to price in potentially strong economic data next week that could have inflationary implications.