Bonds Fall As Stocks Recover
Mar. 13, 2001
NEW YORK (AP) _ Bond prices fell Tuesday, sending their yields higher, as a recovery on Wall Street drew money back into stocks.
The price of the benchmark 10-year Treasury note fell 11/32 point, or $3.44 per $1,000 in face value. Its yield, which moves in the opposite direction, rose to 4.93 percent compared with 4.89 percent late Monday.
The 30-year Treasury bond fell 15/32 point to yield 5.33 percent, up from 5.30 percent a day earlier, according to Bridge Telerate news service.
Bonds fell back after Wall Street recovered from a steep slide the day before. The Nasdaq closed up 91.42 at 2,014.80, a 6.5 percent gain, taking back much of Monday's 129-point loss. The Dow rose 82.55 to 10,290.80.
In other trading, short-term Treasury securities fell between 1/16 point to 3/32 point, while intermediate maturities fell between 5/32 point and 1/4 point.
Yields on three-month Treasury bills were 4.62 percent as the discount rose 0.01 percentage point to 4.51 percent. Six-month yields were 4.52 percent, as the discount rose 0.03 percentage point to 4.39 percent. One-year yields were 4.39 percent as the discount rose by 0.01 percentage point from late Monday to 4.21 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 5.50 percent from 5.56 percent.
In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds rose 1/16 point to 104 1/2. The average yield to maturity was unchanged at 5.34 percent.