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Automakers' bonds tumble after Ford sales slump

NEW YORK
Tue Jul 1, 2008 2:09pm EDT

NEW YORK (Reuters) - Automakers' bonds tumbled sharply on Tuesday after Ford Motor Co said its U.S. sales fell 28 percent in June on an unadjusted basis, driven by a slump in demand for trucks and SUVs.

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Ford's bonds with a 4.25 percent coupon due in 2036 fell to 68 cents on the dollar, down from 72 cents on Monday, according to MarketAxess.

General Motors Corp's bonds with an 8.375 coupon due in 2033 fell to 57.5 cents on the dollar, down 2 cents on the day, according to MarketAxess. At their trough on Tuesday, they traded at 57 cents on the dollar, a record low. GM is due to report its June sales results later on Tuesday.

(Reporting by Dena Aubin; Editing by Leslie Adler)
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