TREASURY'S BAKER NOT CONCERNED BY BOND DECLINES

  Treasury Secretary James Baker,
  asked whether he was concerned about yesterdays precipitous
  decline in bond prices, said he was not.
      Questioned by reporters as he left a House committee
  hearing, Baker said "no," when asked about the bond decline,
  adding that it was a reflection of concern about the
  possibility of a trade war.
      "It is what the markets think would be the adverse
  consequences of a trade war."
      He said the administration was concerned that protectionism
  would lead to international trade problems adding that he
  thought the action against the Japanese was still consistent
  with this policy.
  

