Bond yields loiter on quiet day for markets

AP News
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Posted: Aug 06, 2012 5:11 PM

NEW YORK (AP) — Treasury yields are largely flat, reflecting an unusually quiet day in the stock market.

The yield on the government's benchmark bond, the 10-year Treasury, fell to 1.56 percent from 1.57 percent. The yield on the 30-year Treasury bond is unchanged at 2.65 percent.

The yield is the interest rate the government pays to persuade investors to buy its bonds. When investors are feeling confident, fewer of them buy bonds and the yield goes up. When they're feeling nervous, more of them buy bonds and the yield goes down.

Bond prices move in the opposite direction of the yields. The price of the 10-year Treasury dipped 3.1 cents for every $100 invested. The price of the 30-year bond is also down slightly, falling 15.6 cents for every $100 invested.