Magazine article American Banker

Most Yields Rise despite Good Inflation Report

Magazine article American Banker

Most Yields Rise despite Good Inflation Report

Article excerpt

Yields on most government securities moved higher Tuesday despite a government report showing the steepest drop in wholesale prices in two years.

The 30-year Treasury bond was the exception. In late trading, the yield on the long bond was unchanged at 6.62%.

But 10-year notes yielded 5.75%, up 3 basis points, and two-year notes yielded 4.02%, up 7 basis points. The bond-equivalent yield on three-month Treasury bills was 3.1 1%, up 5 basis points.

Dow Falls Slightly

Stocks were mixed, as investors registered caution about the June consumer price index, to be announced today. The Dow Jones industrial average lost 8.94 to 3,515.44. The Standard & Poor's 500 index fell 0.89 to 448.09. But the Nasdaq composite index rose 0.8 point to 708.47.

The dollar, which had risen sharply Monday on talk of a cut in European rate cuts, lost ground on Tuesday, as the good news on inflation seemed to preclude a tightening of credit by the Federal Reserve. …

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