Bond Prices Wilt As Stocks Rise
NEW YORK (AP) _ Bond prices faded Friday as Wall Street stocks rose and ended a second straight winning week despite uncertainty over the situation with Iraq.
The price of the benchmark 10-year Treasury note was down 3/16 of a point, or $1.88 per $1,000 in face value. Its yield, which moves in the opposite direction, rose to 3.89 percent from 3.87 percent Thursday.
The 30-year Treasury bond fell 9/16 of a point, or $5.63 per $1,000, to yield 4.85 percent, up from 4.81 percent Thursday, according to Moneyline Telerate.
The Dow Jones industrial average climbed 103 points to close at 8,018. The broader market also finished higher. The Nasdaq composite index gained 18 points to close at 1,349. The Standard & Poor’s 500 index rose 11 points to 848.
In other bond trading, the benchmark two-year note fell 1/32 of a point to yield 1.60 percent, up from 1.58 percent on Thursday.
Intermediate maturities were down 1/32 to 7/32.
Yields on one-month Treasury bills were 1.19 percent, as the discount rose 0.01 point to 1.17. Yields on three-month Treasury bills were 1.18 percent, as the discount held steady at 1.16 percent.
Six-month yields were 1.20 percent, as the discount rose 0.01 point to 1.18 percent.
Yields are the interest bonds pay by maturity, while the discount is the interest at which they are sold.
The federal funds rate, the interest on overnight loans between banks, fell to 1.19, down from 1.25 Thursday.
In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds rose 1/32 of a point to 109 5/32. The average yield to maturity was unchanged at 5.10 percent.