Bond Slide Takes Dow With It; Blue-Chip Average Falls 37 as Rates Rise
Bond prices fell again today, continuing a slide that has interrupted a three-year rally that has taken interest rates to their lowest levels in decades.</br></br>Prices fell about 1 percent on 30-year U.S. government bonds. The yield, which moves inversely to the price, rose to 6.10 percent from 6.04 percent Friday.</br></br>In the past weeks bonds have fallen from their record highs as investors have become less confident that interest rates would continue their decline in the near future.</br></br>Stock prices, which started the day higher, followed bonds lower, with the Dow Jones industrial average falling 37.45 points to close at 3575.80.</br></br>Higher interest rates depress stock prices because they increase the cost of doing business and pinch corporate profits.