Bonds Prices Mostly Higher
NEW YORK (AP) _ Bond prices were mostly higher Thursday as stock trading was pressured by disappointing economic reports.
The price of the benchmark 10-year Treasury note was virtually unchanged. Its yield, which moves in the opposite direction, edged up to 3.84 percent from 3.83 percent late Wednesday.
The 30-year Treasury bond fell 3/16 point to yield 4.78 percent, compared with 4.76 percent on Wednesday, according to Moneyline Telerate.
Several disconcerting economic reports held stocks back. The Institute for Supply Management said the nation’s manufacturing sector contracted for a second month, with its index falling to 45.4 in April from 46.2 in March. Analysts had projected an April reading of 47.
The Commerce Department said Thursday that construction spending slipped 1 percent in March, the largest drop in seven months. Economists were forecasting a small gain in overall construction spending.
The Dow Jones industrial average closed down 26 points, or 0.3 percent, at 8,454. The broader market finished mixed. The Nasdaq composite index rose 8 points, or 0.6 percent, to 1,473. The Standard & Poor’s 500 index dipped 0.62 point, or 0.1 percent, to 916.
In other trading, the benchmark 2-year note rose 1/32 point to yield 1.47 percent, down from 1.48 percent. Intermediate maturities were unchanged to rising 1/16 point.
Yields on one-month Treasury bills were 1.07 percent as the discount fell 0.04 percentage point to 1.06 percent. Yields on three-month Treasury bills were 1.10 percent as the discount fell 0.02 percentage point to 1.08 percent. Six-month yields were 1.12 percent, as the discount fell 0.02 percentage point to 1.09 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, remained at 1.31 percent.
In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds was up 3/16 point to 111 17/32. The average yield to maturity was unchanged at 4.97 percent.