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Treasury Bonds Fall As Stocks Rise

March 17, 2004

NEW YORK (AP) _ Bond prices fell Wednesday, as investors pushed stocks higher, placated by stable inflation and steady rates.

The price of the benchmark 10-year Treasury note fell 5/32 point, or $1.56 per $1,000 in face value. Its yield, which moves in the opposite direction, rose to 3.70 percent, from 3.69 percent late Tuesday.

The 30-year Treasury bond fell 5/16 point to yield 4.67 percent, up from 4.65 percent a day earlier, according to Moneyline Telerate.

The Dow Jones industrial average rose 116 points, or 1.1 percent, to 10,300.

The other major indexes were also sharply higher. The Standard & Poor’s 500 index climbed 13 points, or 1.2 percent, to 1,124, and the Nasdaq composite index was up 34 points, or 1.7 percent, at 1,977.

In other trading, the benchmark 2-year note fell 1/32 point to yield 1.50 percent. Intermediate maturities fell between 1/16 point and 5/32 point.

Yields on one-month Treasury bills were 0.94 percent as the discount fell 0.01 percentage point at 0.92 percent.

Yields on three-month Treasury bills were 0.94 percent as the discount slipped 0.03 percentage point to 0.92 percent.

Six-month yields were 1.00 percent, as the discount was unchanged at 0.98 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, remained at 1.00 percent.

In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds remained at 115 31/32. The average yield to maturity remained at 4.66.

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