NEW YORK — Bond prices posted some modest gains Friday as concerns about inflation subsided and hopes grew that the Federal Reserve will encourage lower interest rates.
Separately, stock prices soared again on Wall Street, bolstered by computerized program trading and some bargain hunting. The Dow Jones average of 30 industrial stocks closed at 1,893.56, up 32.90 points over Thursday and 19.97 points on the week.
Big Board volume totaled 200.65 million shares, compared to 158.12 million on Thursday.
The Treasury's 30-year bond rose half a point, or about $5 per $1,000 face value. Its yield fell to 7.44% from 7.47%.
Although no new economic reports accounted for an improvement in the bond market, analysts said many traders felt optimistic that the Federal Reserve Board will not tighten its credit policies.