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Date: 2010-05-25
Interest rates tick higher as stocks rebound

, On Friday May 21, 2010, 5:46 pm EDT
NEW YORK (AP) -- Interest rates rose in the bond market Friday a day after a sharp drop.
The stock market rebounded from Thursday's big decline after Germany's parliament approved the country's share of a $1 trillion plan to help contain debt problems in the European Union. That helped ease buying of Treasurys.
The price of the 10-year Treasury note maturing in May 2020 fell 21.875 cents per $100 in face value to $102.1875. Its yield rose to 3.24 percent from 3.22 percent late Thursday.
The Dow Jones industrial average rose 125.38, or 1.3 percent, to 10,193.39, according to preliminary calculations. The Dow tumbled 376 points Thursday, erasing the gains it had made in 2010.
The buying in stocks and other riskier investments like commodities reduce demand for safe holdings such as Treasurys and cash.
The yield on the 30-year Treasury bond maturing in May 2040 rose to 4.10 percent from 4.09 percent. Its price fell 25 cents to $104.6875.
In other trading, the yield on the 2-year note that matures in April 2012 rose to 0.76 percent from 0.72 percent. The price fell 9.375 cents to $100.4375.
The yield on the three-month Treasury bill maturing on Aug. 19 remained unchanged at 0.15 percent. Its discount rate stood at 0.16 percent.

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