Interest rates increased on Thursday, as Federal Reserve Board Chairman Alan Greenspan continued his hard line about inflation and a possible tightening.
The price of the 30-year Treasury bond, down 7/8 on Wednesday, had lost another 1/2 by Thursday at 4 p.m. This raised the yield to 6.66% from 6.62%.
Ten-year notes yielded 5.89%, up from 5.83%; five-year notes yielded 5.23%, up from 5.16%; and two-year notes yielded 4.19%, up from 4.12%.
Alan Levenson, money market economist at UBS Securities, said Mr. Greenspan, delivering the Senate version of his Humphrey-Hawkins testimony, did not soften the anti-inflation message delivered Tuesday at the House version.
Steve Ricciuto, economist at Barclays de Zoete Wedd, said a disappointing response to a sale of $15.25 billion in one-year Treasury bills hurt bonds.