"But a pause in the market was to be expected." Treasury prices did make gains early in the week. On Tuesday, IBM Corp. reported that it planned to reduce its global manufacturing capacity, cut capital spending, and reduce its payrolls by 25,000 in 1993. The announcement was taken by the market as an indication that the economic recovery continues to struggle. On Wednesday, government securities prices received a boost from purchases in the short end of the market ahead of next week's auctions of two- and five-year notes. Traders said the buying came from municipal governments that needed to defease refinancings, foreign central banks, and portfolio managers who had let cash build up. "What's happening in the tax-exempt market is more of a consolidation," the bond analyst said. "The market is still geared to do better going into January, when anywhere from $15 billion to $21 billion is expected to flow into munis from the January redemptions and coupon payments."