January 28, 2010 |
|NEW YORK (AP) -- Interest rates rose Wednesday in the bond market as a brighter take on the economy from the Federal Reserve eased demand for safe haven investments.|
Yields rose as Treasury prices fell.
The turnaround, which also pulled stocks higher after early losses, came when the Federal Reserve said the economy is continuing to improve. The statement came after a two-day meeting on interest rates, which the Fed left at their record-low level.
Language in the Fed's statement saying that "economic activity has continued to strengthen" helped ease demand for Treasurys.
The yield on the 10-year Treasury note that matures in November 2019, a benchmark for interest rates on mortgages and other consumer loans, rose to 3.66 percent from 3.63 percent in late trading Tuesday. Its price fell 7/32 to 97 22/32.
The yield on the two-year note maturing in January 2011 rose to 0.92 percent from 0.82 percent, while its price fell 3/32 to 99 29/32.
The yield of the 30-year bond that matures in November 2039 rose to 4.57 percent from 4.56 percent, as its price fell 5/32 to 96 28/32.
The yield on the three-month T-bill that matures April 29 rose to 0.07 percent from 0.06 percent late Monday. Its discount rate stood at 0.08 percent.