Bond Prices Rise
Bond Prices Rise
Aug. 09, 2003
NEW YORK (AP) _ Bond prices were mostly higher Friday, as stock trading on Wall Street was mixed.
The price of the benchmark 10-year Treasury note rose 7/32 point, or $2.19 per $1,000 in face value. Its yield, which generally moves in the opposite direction, fell to 4.27 percent from 4.37 late Thursday.
The 30-year Treasury bond fell 5/16 point to yield 5.23 percent, up from 5.21 percent, according to Moneyline Telerate.
The Dow Jones industrial average closed up 65 points, or 0.7 percent, at 9,191.
The broader market finished mixed. The Nasdaq composite index fell 8 points, or 0.5 percent, to 1,644. The Standard & Poor's 500 index rose 3.47, or 0.4 percent, to 978.
In other trading, the benchmark 2-year note rose 1/32 point to yield 1.70 percent, down from 1.71 percent. Intermediate maturities rose between 3/32 point and 1/16 point.
Yields on one-month Treasury bills were 0.89 percent as the discount increased 0.01 percentage point to 0.88 percent. Yields on three-month Treasury bills were 0.95 percent as the discount rose 0.01 percentage point at 0.93 percent. Six-month yields were 1.03 percent, as the discount remained unchanged to 1.01 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, rose to 1.00 percent, from 0.94 percent on Thursday.
In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds rose 11/16 point to 107 31/32 from 107 9/32. The average yield to maturity fell to 5.16 percent from 5.21 percent.