Bonds Prices Are Mostly Higher
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NEW YORK (AP) _ Bond prices mostly rose Wednesday as President Bush announced an economic stimulus plan that included tax cuts for individuals and businesses.
The price of the benchmark 10-year Treasury note rose 1/4 point, or $2.50 per $1,000 in face value. Its yield, which moves in the opposite direction, fell to 4.47 percent compared with 4.51 percent Tuesday.
The 30-year Treasury bond rose 3/8 point, or $3.75 per $1,000 in face value, to yield 5.30 percent, down from 5.33 percent Tuesday, according to Bridge Telerate news service.
The Dow surged 173.19, closing at 9,123.78, the first time the Dow has broken the 9,000 level since Sept. 18. The Nasdaq composite index rose 88.44 to 1,580.77.
In other trading, the benchmark 2-year note fell 1/32 point and the yield remained steady at 2.75 percent. Intermediate securities traded higher between 1/32 point and 5/32 point.
Yields on one-month Treasury bills were 2.20 percent as the discount fell 0.10 percentage point from Tuesday’s auction level to 2.18 percent. Yields on three-month Treasury bills were 2.23 percent as the discount fell 0.04 percentage point from Tuesday rate of 2.19 percent. Six-month yields were 2.24 percent, as the discount fell 0.03 percentage point from Tuesday’s rate to 2.19 percent.
Yields are the interest bonds pay by maturity, while the discount is the interest at which they are sold.
The federal funds rate remained staedy at 2.50 percent.