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Bonds Mixed Ahead of Fed Meeting

May 18, 1999

NEW YORK (AP) _ Bond prices were mixed Monday as traders awaited decisions on interest rates by the Federal Reserve’s policy making committee.

The price of the benchmark 30-year Treasury bond gained 13/32 point, or $4.06 per $1,000 in face value. Its yield, which moves in the opposite direction, fell to 5.89 percent from 5.92 percent late Friday.

In the broader market, prices of short-term Treasury securities fell 1/32 point and intermediate maturities were down 1/32 point and 3/32 point, reported Bridge Telerate, a financial information service.

Yields on three-month Treasury bills were 4.69 percent as the discount rose 0.06 percentage point from Friday to 4.57 percent. Six-month yields were 4.80 percent, as the discount rose 0.04 percentage point to 4.62 percent. One-year yields were 4.85 percent as the discount was unchanged at 4.62 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 4.80 percent from 4.89 percent late Friday.

In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds rose 1/32 to 126 26/32. The average yield to maturity was 5.38 percent, unchanged from Friday.

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