NEW YORK (AP) _ Bond prices fell on Monday as investors, encouraged by gains in the stock market, focused on equities.

The benchmark 10-year Treasury note fell 23/32 point, or $7.19 per $1,000 in face value. Its yield, which moves in the opposite direction, rose to 4.24 percent compared with 4.15 percent on Friday.

The 30-year Treasury bond dropped 1 5/32 point to yield 5.05 percent, up from 4.97 percent on Friday, according to Moneyline Telerate.

The Dow Jones industrial average rose 125 points to 10,450.

The Nasdaq composite index closed up 33 points at 2,006, its first close above 2,000 since Jan. 15, 2002. The Standard & Poor's 500 index finished up 14 points at 1,109.

The 2-year note slipped 3/32 point, yielding 1.86 percent. Intermediate maturities fell between 1/8 point and 19/32 point.

Yields on one-month Treasury bills settled at 0.76 percent as the discount rose 0.01 percentage points to 0.75 percent. Yields on three-month Treasury bills were 0.88 with a discount of 0.86 percent, up 0.01 percentage point. Six-month yields finished at 0.99 percent as the discount was flat at 0.97 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 0.94 percent from 1 percent on Friday.

In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds fell 1/8 to 112 11/32, while the average yield to maturity rose to 4.92 percent from 4.91 percent.