Bond Prices Rise Modestly, Stocks Advance
Wednesday May 11, 6:21 pm ET
Bond Prices Rise Modestly As Stocks Advance, Fueled by Falling Oil Prices
NEW YORK (AP) -- Bond prices rose modestly on Wednesday as the stock market also advanced, fueled by falling oil prices.
The price of the benchmark 10-year Treasury note added 3/32 point, or 94 cents per $1,000 in face value. Its yield, which moves in the opposite direction, slipped to 4.20 percent from 4.21 percent late Tuesday.
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The 30-year Treasury bond rose 13/32 point to yield 4.55 percent, down from 4.57 percent a day earlier, according to Moneyline Telerate.
The drop in oil prices -- occurring as the U.S. government announced a larger-than-anticipated stockpile of oil and gasoline -- removed a significant obstacle for stocks to move higher. A barrel of light crude settled at $50.45, down $1.62, on the New York Mercantile Exchange
The Dow Jones industrial average rose 19 points, or 0.19 percent, to 10,300.
Broader stock indicators also moved higher. The Standard & Poor's 500 index was up 5 points, or 0.42 percent, at 1,171, and the Nasdaq composite index gained 9 points, or 0.45 percent, to 1,972.
In other trading, the benchmark 2-year note was unchanged to yield 3.67 percent. Intermediate maturities increased between 3/32 point and 1/32 point.
Yields on one-month Treasury bills were 2.56 percent as the discount slipped 0.01 percentage point to 2.52 percent. Yields on three-month Treasury bills were 2.86 percent as the discount slipped 0.02 percentage point to 2.80 percent. Six-month yields were 3.18 percent, as the discount slipped 0.01 percent to 3.09 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, was unchanged from late Tuesday at 3 percent.
In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds rose 9/32 to 114 21/32 from 114 3/8. The average yield to maturity slipped to 4.76 percent from 4.78.
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