The inflationary import of these increases caused advances in prices of both precious and base metals.

But the limit declines in corn and soybean meal caused limit advances in prices of cattle on feedlots.

Dealers attributed the late turnabout to an advance in prices of Treasury bond futures in Chicago in the last hour of trading there.

In the bond market, the Fed's action, combined with the report yesterday that the unemployment rate had risen to 7.8 percent, sparked an immediate sharp advance in prices, driving down yields.

In some instances it seems to me that our advance in prices, particularly on our specialties, should have given us even a handsomer profit over the increased cost of production than we formerly received.

Financial market history teaches proves that it takes much longer for a market to recover from the bursting of a bubble than it does from a simple 'reaction' during a more moderate advance in prices.

Several dealers attributed the lack of a more determined followthrough in New York on the dollar to fears that the dollar's recent strength had been too dependent on the advance in prices of Treasury securities.

As for the longer maturities, several bond dealers said the strong advance in prices of fixed-income securities last week and the accompanying decline in yields may encourage some corporate borrowers to move up the sales dates of previously planned offerings.

But Mr. Sullivan and other credit market specialists cautioned that the sharp advance in prices of Treasury and other fixed-income issues "had left many dealers on the Street almost entirely on the long side of the market."

Tracking the Chip Stocks Laszlo Birinyi, head of Birinyi Associates, a stock market research and consulting firm, said the current advance in prices for five semiconductor stocks began last year on April 14, with prices for the group increasing 87 percent through yesterday.