NEW YORK (AP) _ Bond prices rose Tuesday as a slumping stock market gave investors a reason to park their money in safe-haven investments.
The price of the benchmark 10-year Treasury note rose 17/32 point, or $5.31 per $1,000 in face value. Its yield, which moves in the opposite direction, fell to 4.36 percent compared with 4.42 percent late Monday.
The 30-year Treasury bond rose 9/16 point to yield 5.23 percent, down from 5.27 percent a day earlier, according to Moneyline Telerate.
The Treasury market benefited from a decline on Wall Street, where the Dow Jones industrial average closed down 79.09 points, or 0.8 percent, at 9,507.20 as a disappointing revenue outlook from Nokia Corp. set off a bout of profit-taking.
In other trading, the benchmark 2-year note rose 5/32 point to yield 1.68 percent from 1.77 percent Monday. Intermediate maturities rose between 9/32 point and 15/32 point.
Yields on one-month Treasury bills were 0.94 percent as the discount rose 0.01 percentage point to 0.93 percent. Yields on three-month Treasury bills were 0.95 percent as the discount was unchanged at 0.93 percent. Six-month yields were 1.03 percent, as the discount was unchanged from Monday at 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, fell to 0.94 percent from 1.00 percent late Monday.
In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds fell 1/16 point to 108 7/32. The average yield to maturity rose to 5.12 percent from 5.11 percent.