WMT ,,, Bond Prices Finish Mostly Higher
Thursday May 12, 6:10 pm ET
Bond Prices Mostly Higher, Reflecting Strong Demand for New 10-Year Notes, Drop in Stocks
NEW YORK (AP) -- Bond prices finished mostly higher Thursday, reflecting strong demand for the government's auction of new 10-year notes and a drop in stocks.
The price of the benchmark 10-year Treasury note rose 3/16 point, or $1.88 per $1,000 in face value. Its yield, which moves in the opposite direction, slipped to 4.17 percent from 4.20 percent late Wednesday.
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The 30-year Treasury bond rose 14/32 point to yield 4.52 percent, down from 4.55 percent a day earlier, according to Moneyline Telerate.
The rise in most bond prices came as the Treasury sold $14 billion in 10-year notes in the last of three auctions held this week. The auction brought yields on the 10-year note to 4.22 percent, the lowest level since February.
Stocks fell sharply Thursday, after a profit warning by Wal-Mart Stores Inc. seeded new investor worries of an economic slowdown.
The Dow Jones industrial average fell 111 to 10,189. The Standard & Poor's 500 index was down 12 to 1,159. The Nasdaq composite index fell nearly 8 points to 1,964.
In other trading, the benchmark 2-year note rose 1/32 point to yield 3.65 percent, down from 3.67 percent Wednesday. Intermediate maturities varied between a gain of 5/32 and a drop of 13/32.
Yields on one-month Treasury bills were 2.53 percent as the discount declined 0.02 percentage point to 2.50 percent. Yields on three-month Treasury bills were 2.88 percent as the discount rose 0.02 percentage point to 2.82 percent. Six-month yields were 3.17 percent, as the discount slipped 0.02 percent to 3.07 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 Wednesday at 3 percent.
In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds rose 3/32 to 114 3/4. The average yield to maturity was steady at 4.76 percent.
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