Interest rates rise in bond market after stocks post back-to-back gains
By APThursday, June 3, 2010
Bond yields rates as stocks gain for a second day
NEW YORK — Interest rates rose in the bond market Thursday as back-to-back gains in stocks weakened demand for safe investments.
The drop in Treasury prices drove rates higher. The yield on the 10-year Treasury note, which is tied to rates on mortgages and other consumer loans, rose to 3.37 percent from 3.35 percent late Wednesday.
The price on the note maturing in May 2020 fell 25 cents to $101.0625.
Stocks rose for a second day on reports that business at the nation’s services companies grew in May and that the number of people seeking first-time jobless claims slipped for a second week. That lessened demand for safer investments like Treasurys.
The Dow Jones industrial average rose about 6 points a day after gaining 226.
In other trading, the yield on the 30-year Treasury bond maturing in May 2040 rose to 4.27 percent from 4.24 percent. Its price fell 53.12 cents to $102.71875.
The yield on the two-year note that matures in May 2012 rose to 0.83 percent from 0.82 percent. The price fell 3.125 cents to $99.84375.
The yield on the three-month Treasury bill maturing on Sept. 2 fell to 0.13 percent from 0.14 percent. Its discount rate was 0.14 percent.
