Bonds Sink on Greenspan Testimony

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Bonds Sink on Greenspan Testimony
The Associated Press
Published: Jul 20, 2004






NEW YORK (AP) - Bond prices sank on Tuesday after Federal Reserve chairman Alan Greenspan gave an upbeat assessment of the economy in testimony before the Senate Banking Committee.
The price of the benchmark 10-year Treasury note dropped 11/16 point or $6.88 per $1,000 in face value from Monday. Its yield, which moves in the opposite direction, rose to 4.44 percent from 4.36 percent.

The 30-year Treasury bond fell 29/32 point to yield 5.17 percent, up from 5.11 percent on Monday, according to Moneyline Telerate.

Greenspan praised the economy's overall health, however he did warn again that the central bank would keep a close eye on prices and inflation and would aggressively raise interest rates if necessary.

Wall Street liked Greenspan's assessment of economic prospects. The Dow Jones industrial average finished the day up 55 points at 10,149. The Standard & Poor's 500 index was up 8 to 1,109 while the Nasdaq composite index advanced 33 to 1,917.

http://ap.tbo.com/ap/breaking/MGB73EZKWWD.html