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Bonds Prices Fall

April 10, 2003

NEW YORK (AP) _ Bond prices fell Thursday, with stocks edging higher, as investors looked beyond the war in Iraq to the earnings season.

The price of the benchmark 10-year Treasury note fell 13/32 point, or $4.06 per $1,000 in face value. Its yield, which moves in the opposite direction, rose to 3.95 percent compared with 3.90 percent late Wednesday.

The 30-year Treasury bond fell 5/8 point to yield 4.94 percent, up from 4.90 percent a day earlier, according to Moneyline Telerate.

The dropoff in bonds coincided with a reversal in stocks.

The Dow Jones industrials closed up 23 at 8,221. The Nasdaq composite index rose 9 points to 1,366. The Standard & Poor’s 500 index advanced 6 points to 872.

In other trading, the benchmark 2-year note fell 5/32 point, to yield 1.61 percent, up from Tuesday’s 1.52 percent. Intermediate maturities fell between 5/32 point and 11/32 point.

Yields on one-month Treasury bills were 1.17 percent as the discount rose 0.01 percentage point to 1.15 percent. Yields on three-month Treasury bills were 1.14 percent as the discount rose 0.01 percentage point to 1.12 percent. Six-month yields were 1.15 percent, as the discount rose 0.03 percentage point to 1.12 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 1.25 percent.

In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds rose 3/16 point 110 1/32. The average yield to maturity fell to 5.03 percent from 5.04 percent.

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