Long-term bond prices rose Friday as investors continued to look to the Treasury market as an escape from the sagging stock market.
The price of the Treasury's main 30-year bond was up 3-16 point, or $1.88 per $1,000 in face value. Its yield, which moves in the opposite direction, fell from 7.05 percent late Thursday to 7.03 percent, its lowest level in a week.The market received a boost from some good economic news, but the rally was led primarily by falling stocks and investors' desire to put money into the relative safety of bonds.
"I think that was more the mover than any of the data today," said Elliott Platt, director of economic research at Donaldson, Lufkin & Jenrette Securities Corp.
The Dow Jones industrial average fell about 10 points, having recovered from a midday loss of nearly 50 points.
Wholesale prices rose a moderate 0.2 percent in June while retail sales were down 0.2 percent, the second drop in three months.
The two government reports raised hopes in financial markets that the Federal Reserve might postpone any increase in the interest rates, feeling that inflation is still moderate and the economy's growth is slowing.
The market's enthusiasm did not even seem to be damped by comments from former Federal Reserve vice chairman Alan Blinder on CNBC that second-quarter U.S. growth was "surprisingly strong."
Elsewhere in the market, prices of short-term Treasury securities fell 1-16 point and intermediate maturities rose 1-32 point to 3-32 point, reported Dow Jones Tele-rate Inc., a financial information service.
The Lehman Brothers Daily Treasury Bond Index, reflecting price movements on bonds with maturities of a year or longer, rose 2.22 points to 1,224.91.
Yields on three-month Treasury bills rose to 5.28 percent as the discount rose 0.04 percentage point to 5.15 percent. Six-month yields rose to 5.53 percent as the discount rose 0.03 point to 5.32 percent. One-year yields rose to 5.83 percent.