Bond Prices Drift Lower In Quiet Trading
NEW YORK (AP) _ Bond prices drifted lower in quiet trading Friday while short-term interest rates were little changed.
In the secondary market for Treasury bonds, prices of short-term governments slipped 1-32 point, intermediate maturities lost 6-32 point and long-term issues were off 10-32 point, according to the investment firm of Salomon Brothers Inc.
The movement of a full point is equivalent to a change of $10 in the price of a bond with a $1,000 face value.
The Merrill Lynch Daily Treasury Index, which measures price movements on all outstanding Treasury issues with maturities of a year or longer, slipped 0.16 to 106.59. The Shearson Lehman Daily Treasury Bond Index, which makes a similar measurement, fell 2.40 to 1,116.76.
In corporate trading, industrials and utilities fell 1/4 point in light trading, Salomon Brothers said.
Among tax-exempt municipal bonds, general obligations and dollar bonds were little changed, also in light dealings, it said.
Yields on three-month Treasury bills, meanwhile, edged down 2 basis points to 7.06 percent. A basis point is one-hundredth of a percentage point. Six- month bills fell 1 basis point to 7.20 percent and one-year bills were off 1 basis point at 7.40 percent.
Yields on 30-year Treasury bonds climbed to 10.45 percent from 10.41 percent late Thursday.
The federal funds rate, the interest on overnight loans between banks, traded at 7 9-16 percent, down from 7 13-16 percent late Thursday.