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Bond prices surge again in aftermath of attacks

SHARE Bond prices surge again in aftermath of attacks

NEW YORK (AP) — Bond prices continued to surge Friday as investors sought a safe haven on the second day of light trading following Tuesday's terrorist attacks.

The price of the Treasury's 10-year note was up 21/32 point, or $6.56 per $1,000 in face value, at 2 p.m. Friday, while its yield fell to 4.55 percent, from 4.64 percent at 2 p.m. Thursday. Prices and yields move in opposite directions.

The price of the 30-year bond rose $5.31 per $1,000 to yield 5.36 percent, below the 5.40 percent from Thursday.

Trading in U.S. treasuries resumed in a second, shortened session Friday after a hiatus following Tuesday's attacks on New York and Washington that destroyed the World Trade Center and damaged the Pentagon.

Yields on three-month Treasury bills dipped to 2.72 percent, down from 2.75 percent on Thursday. Six-month yields fell to 2.66 percent, down from 2.71 percent Thursday.

The benchmark 2-year note rose 7/32 point to yield 2.86 percent, down from 2.98 percent Thursday.

Yields are the interest bonds pay by maturity, while the discount is the interest at which they are sold.

The federal funds rate, the interest on overnight loans between banks, remained at 3.50 percent Friday, unchanged from Thursday.