NEW YORK (AP) _ Treasury prices were mostly lower on Thursday after a Federal Reserve official's remarks were interpreted to mean that another interest rate cut might not be forthcoming.

The price of the benchmark 10-year Treasury note fell 5/8 point, or $6.25 per $1,000 in face value.

Its yield, which moves in the opposite direction, rose to 5.47 percent, compared with 5.39 percent late Wednesday.

The 30-year Treasury bond fell 11/16 to yield 5.83 percent, edging higher from 5.78 percent a day earlier, according to Bridge Telerate news service.

Speaking at the Edinburgh Finance and Investment Seminar in Scotland, Federal Reserve Governor Laurence Meyer indicated concerns about inflation and tight labor markets.

With bonds moving lower, stock prices made modest gains. The Dow Jones industrial average closed up 16.91 at 11,122.42, while the Nasdaq composite index rose 38.54 to 2,282.02.

In other bond trading, short-term Treasury securities were from 3/32 point higher to 5/32 point lower, while intermediate maturities fell 11/16 to 7/16 point.

Yields on three-month Treasury bills rose to 3.66 percent, with the discount yield rising .04 to 3.59 percent. Yields are the interest bonds pay by maturity, while the discount is the interest at which they are sold.

Six-month yields were unchanged at 3.69 percent and the discount rate remained steady at 3.58 percent. One-year yields were 3.71 percent with a discount of 3.59 percent, up 0.03 percentage point.

The federal funds rate, the interest on overnight loans between banks, was unchanged at 4 percent for a third straight day.

In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds fell 5/32 point to 101 29/32. The average yield to maturity was 5.46 percent, up from late Tuesday's 5.45 percent.