Bond Prices Mostly Higher
Feb. 08, 2002
NEW YORK (AP) _ Bond prices mostly rose on Friday as investors continued to worry about corporate bookkeeping and profitability. Bond investors shrugged off a late rally in the stock market, which tends to drain interest in Treasurys.
The price of the benchmark 10-year Treasury note rose 11/32 pushing the yield down to 4.87 percent from 4.92 percent on Thursday.
The 30-year Treasury bond rose 19/32 point to yield 5.37 percent, down from 5.41 percent a day earlier, according to Moneyline Telerate.
The rise in bonds came as stocks languished for much of the day. The Dow Jones industrials closed up 119 points at 9,744.
The broader market also finished higher after fluctuating throughout the day. The Nasdaq composite index rose 37 points, or 2.1 percent, to 1,819. The Standard & Poor's 500 index on Friday advanced 16 points, or 1.5 percent, to 1,096.
In other bond trading, the benchmark 2-year note increased 3/32, to yield 2.90 percent, down from 2.95 percent on Thursday. Intermediate maturities rose between 7/32 point and 11/32 point.
Yields on one-month Treasury bills were 1.66 percent as the discount fell 0.03 percentage point to 1.64 percent. Yields on three-month Treasury bills were 1.69 percent as the discount fell 0.02 percentage point to 1.69 percent. Six-month yields were 1.79 percent, as the discount fell 0.02 percentage point to 1.76 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 1.69 percent from 1.75 percent on Thursday.
In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds rose to 104 5/8 from 104 15/32 on Thursday. The average yield to maturity fell to 5.28 percent from 5.29 percent on Thursday.