Bond Prices Rise Sharply
Jan. 12, 1999
NEW YORK (AP) _ Treasury bond prices were rising sharply at midday, sending long-term yields tumbling below 5.25 percent.
The price of the Treasury's main 30-year bond was up 1 point, or $10 per $1,000 in face value, by early afternoon today, while its yield fell to 5.24 percent from 5.31 percent late Monday. Prices and yields move in opposite directions.
Yields on three-month Treasury bills fell to 4.46 percent as the discount fell 0.03 percentage point from Monday's auction to 4.36 percent. Six-month yields fell to 4.50 percent as the discount fell 0.06 percentage point from the weekly auction to 4.35 percent. One-year yields fell to 4.54 percent as the discount fell 0.07 point from late Monday to 4.34 percent.
Yields are the interest bonds pay by maturity, while the discount is the interest at which they are sold.