Bonds Prices End Higher
Jun. 04, 2003
NEW YORK (AP) _ Bond prices rose Wednesday, sending yields to new lows even as stocks soared on news of positive economic reports.
The price of the benchmark 10-year Treasury note rose 5/16 point, or $3.13 per $1,000 in face value. Its yield, which moves in the opposite direction, slipped to 3.30 percent from 3.33 percent Tuesday.
The 30-year Treasury bond rose 1/8 of a point and its yield was unchanged at 4.37, according to Moneyline Telerate.
The Dow Jones industrial average was up 116 points to close at 9,039. It was the first time the Dow finished above 9,000 since Aug. 22, when it stood at 9,054. The broader market was also higher. The Nasdaq composite index rose 31 points to close at 1,635. The Standard & Poor's 500 index advanced 15 points to close at 986.
In other bond trading, the price of the benchmark 2-year note held steady, yielding 1.21 percent. Intermediate maturities added between 3/32 point and 7/32 point.
Yields on one-month Treasury bills were 1.11 percent as the discount fell 0.05 percentage point to 1.09 percent. Yields on three-month Treasury bills were 1.05 percent as the discount fell 0.04 percentage point to 1.02 percent. Six-month yields were 1.03 percent, as the discount slipped 0.02 percentage point 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, was steady at 1.25 percent.
In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds was 114 5/16 with a yield to maturity of 4.78 percent, down from 4.79 percent Tuesday.