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Bonds Mixed As Stock Market Climbs

November 12, 2002

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NEW YORK (AP) _ Bond prices were mixed on Tuesday as the stock market rose.

The price of the benchmark 10-year Treasury note fell 1/32 or 31 cents per $1,000 in face value. Its yield rose to 3.86 from 3.85 percent on Friday.

The bond market closed two hours early on Friday and was closed on Monday in observance of Veteran’s Day.

The 30-year Treasury bond slipped 1/16 point or 63 cents per $1,000 in face value, and the yield was flat at 4.80 percent, according to Moneyline Telerate.

The Dow Jones industrial average rose 27 points to close at 8,386.

Broader markets also gained. The Standard & Poor’s 500 index added 7 points to 883. The tech-dominated Nasdaq composite index climbed 30 points to 1,350.

The benchmark 2-year note added 1/8 point, to yield 1.78, down from 1.85 percent Friday. Intermediate maturities rose from 5/32 to 1/8 point.

Yields on one-month Treasury bills were 1.18 percent as the discount rose 0.01 percentage point to 1.18 percent. Yields on three-month Treasury bills were 1.21 percent as the discount fell 0.01 percentage point to 1.19 percent. Six-month yields were 1.26 percent, as the discount was flat at 1.23 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, was 1.31 percent, up from 1.25 percent Friday

In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds rose 3/32 to 109 1/32. The average yield to maturity was 4.99 percent, down from 5.01 percent on Friday.

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