Long-term interest rates fell on Wednesday, as the bond market rebounded from the previous day's slide.

At 4 p.m., the price of the government's 30-year bond was up more than 1/2 point, dropping the yield to 6.88% from 6.91%.

Stocks inched up after four straight losing sessions. The dollar rose slightly against the German mark and the yen.

John Lonski, senior economist at Moody's Investors Service, noted that bond market participants are optimistic about coming inflation reports.

On Friday, the government reports on May producer prices; next Tuesday, data on consumer prices will be released.

"There is confidence among traders that there will be nothing worse than neutral news on inflation," Mr. Lonski said.

He predicted that the producer price data will be unchanged. Excluding food and energy prices, he sees a 0.1% rise.

Market analysts said increases in both indexes of more than 0.4% would trigger a Federal Reserve tightening of credit.

John Canavan, a market analyst for Stone & McCarthy Research Associates, a bond market consultant, noted that Treasuries got a lift from traders covering short positions established in anticipation of a drop in bonds.

Dow Up More than a Point

Yields on other Treasuries also fell. The 10-year note was at 6.06%, down from 6.08%. Two-year notes were at 4.29%, down from 4.30%.

The Dow Jones industrial average finished 1.11 points higher at 3,511.69.

In late New York trading, the dollar was at 1.6352 marks, up from 1.6245 on Tuesday, and at 106.45 yen, up slightly from 106.40.

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