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Interest rates climb for 3rd straight day

Interest rates climb for 3rd straight day

Investors opted for riskier assets Friday, moving out of the safety of Treasurys after another sign of economic expansion.
Interest rates rose as bond prices fell slightly in a very light day of trading.
Traders preferred stocks to bonds for the third straight day after the Commerce Department said wholesale inventories and sales increased sharply in July. It was the latest example over the past two weeks to indicate the economy is growing.
Money flooded into Treasurys in August when there were fears the economy might fall back into recession. That sent interest rates sharply lower. As investors have gained confidence in September, they've moved money out of bonds and back into stocks.
The yield on the 10-year Treasury note, which moves opposite its price, rose to 2.78 percent from 2.76 percent late Thursday. Its yield was 2.48 percent at the end of August.
The 10-year note's yield is used to help set interest rates on mortgages and other consumer loans.
The price on the 10-year note that matures in August 2020 fell 12.5 cents Friday to $98.625.
In other trading, the yield on the two-year note rose to 0.58 percent from 0.57 percent. The price on the note, which matures in August 2012, was unchanged at $99.594.
The yield on the 30-year note rose to 3.86 percent from 3.84 percent as the price on the note maturing in August 2040 fell 15.625 cents to $100.313.