Interest rates were steady on Thursday, as the bond market shrugged off a sharp increase in commodity prices.
The yield on the 30-year Treasury was unchanged at 6.81%. The 10-year note's yield fell to 5.9 1% from 5.92%, while that on the two-year note rose to 4.07% from 4.05%.
Stocks rose, as the market prepared for today's "triple witching hour" on which futures and options contracts expire at the same time. The Dow Jones industrial average rose 10.24 points to 3,521.89.
The dollar rose to 107.25 yen from 106.45 and to 1.6580 German marks from 1.6570.
Commodity prices shot up on Thursday. The Commodity Research Bureau index, measuring 21 futures prices, rose 2.15 points, or 1.06%, to 205.58.
Further, gold on the New York Commodity Exchange rose $1.60 to $373.10 an ounce.
Normally, rises in the CRB index and gold prices ignite inflation worries and cause,interest rates to rise. This did not happen on Thursday. -
"The PPI and CPI have relaxed the market about inflation for the time being," said Douglas Schindewolf, economist for Smith Bamey, Haffls Upham & Co.
nnThe producer price index was unchanged in May, while the consumer price index rose a lessthan-expected 0.1% .
