Higher stock market sends Treasury prices lower, boosts interest rates
By APFriday, July 9, 2010
Interest rates rise as stocks pull higher
NEW YORK — A slightly higher stock market is sending Treasury prices lower and interest rates higher.
Stocks are up modestly Friday after China renewed Google’s license to operate in the country. Trading volume is light as many investors await corporate earnings reports next week. The Dow Jones industrial average is up 59 points.
The weaker demand for government debt is driving interest rates higher. The yield on the benchmark 10-year Treasury note is up to 3.06 percent from 3.04 percent late Thursday. Its price is down 21.875 cents to $103.688.
The 10-year yield helps set interest rates on mortgages and other consumer loans. It dropped below 3 percent last week for the first time since April 2009.
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