Bonds Prices Rise
Jan. 25, 2000
NEW YORK (AP) _ Long-term treasury bond prices rose slightly Tuesday after President Clinton said he would propose paying off the government's debt earlier than projected.
The price of the 30-year note climbed 3/16 point, or $1.87 1/2 per $1,000 in face value. Its yield, which moves in the opposite direction, fell to 6.63 percent from 6.64 percent late Monday.
Trading was light in other issues, which closed with little change. Investors were awaiting congressional testimony by Federal Reserve Chairman Alan Greenspan. Greenspan, whose appearance before the Senate Budget Committee was canceled Tuesday due to a winter storm, has another date before legislators on Wednesday.
Prices of short-term Treasury securities fell by between 1/32 point and 1/16 point, and intermediate maturities fell by 1/32 to 3/32 point, as reported Bridge Telerate, a financial information service.
Yields on three-month Treasury bills were 5.56 percent as the discount rose 0.01 percentage point from Monday's auction to 5.40 percent. Six-month yields were 5.77 percent, as the discount rose 0.01 percentage point from the weekly auction, to 5.53 percent. One-year yields were 6.09 percent as the discount rose 0.02 percentage point from late Monday to 5.75 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 5.50 percent.
The Bond Buyer index for municipal bonds rose 1/32 to 91 7/32 point. The yield was 6.31 percent, unchanged from late Monday.