Interest rates rose slightly on Tuesday, as the weeklong rally in the government bond market came to a halt.
Stocks gained moderately, with the Dow Jones industrial average rising 7.82 points to a record 3,586.98 and the Nasdaq composite index advancing 4.11 points to a record 731. The dollar was mixed.
The yield on the 30-year bond, which had fallen about 20 basis points in the last week, rose I basis point from Monday to 6.3 1 % in late trading.
"The market has run out of room to rally," said Charles Lieberman, market economist for Chemical Securities Inc.
He said long-term bonds have been supported by technical factors, noting that last week's sale of 30-year bonds would be the last such issue for six months.
Steve Ricciuto, economist for Barclays de Zoete Wedd, said intermediate Treasury yields rose when the Federal Reserve did not execute an expected "coupon pass," in which it buys medium-term Treasuries.
Notes Also Up
The 10-year note yielded 5.70%, up from 5.67% on Monday; five-year notes yielded 5.05%, versus 5.02%; and two-year notes yielded 4%, versus 3.94%. The bond-equivalent yield on three-month Treasury bills was 3.08%, up from 3.07%.