In a sign of investor confidence in an economic recovery, U.S. interest rates grew for the third consecutive day Friday as more people transferred funds to stocks from bonds.

The yield on the 10-year Treasury note, which increases as bond prices fall, rose to 2.81% from 2.77% Thursday and from 2.61% Tuesday, when the rate started its upward march. The yield has also grown from 2.47% at the end of August, although it has fallen from 3.36% at this time last year. Meanwhile, the 30-year Treasury bond yield rose to 3.88% Friday from 3.84% Thursday and from 3.52% at the end of last month.

While growing rates aren't good for those looking to refinance their homes and get new mortgages, they're a welcome sign that equity investments are on the rise. The Dow Jones Industrial Average ($DJI) rose 0.46% to 10,462.77 on Friday, while the Nasdaq ($NDAQ) advanced 0.28% to 2,242.48.

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They call it inflation and it may not be the sign that this article wants it to be. The market is going tank this week when the unemployment numbers come out along with revised numbers from last week. That may drag bonds up even more but it won't be a good thing..

September 11 2010 at 9:17 AM Report abuse rate up rate down Reply

I want interest rates to rise through the roof please! I am a saver and this would be good news! I also want a to replace the income tax. look it up online and educate yourself. this is the only way to take the money and power away from Washington and give it back to the people...but Congress doesn't want that, of course. and put the dollar back on the gold standard stop this economic free for all in Washington!

September 11 2010 at 7:39 AM Report abuse rate up rate down Reply