NEW YORK, Oct. 23 (UPI) -- The U.S. bond market retreated Monday on fears that the Federal Reserve may issue a hawkish inflation statement this week.
The 10-year Treasury note fell 12/32, lifting its yield to 4.84 percent. That helped lift the dollar, which rose to 119.32 yen from 118.69, as the euro fell to $1.2544 from $1.2619.
The central bank meets Tuesday to consider interest rates and will disclose its decision Wednesday. It is not expected to change its 5.25 percent interest rate, but bond traders are nervous that the Fed may issue a strong anti-inflation message that could signal future rate hikes.
Stock, meanwhile, rose as third-quarter earnings reports were largely strong. The Dow Jones industrial average was up 113.74 or 0.95 percent to 12,116.11 on a volume of 1.3 billion shares. The Nasdaq composite gained 13.26 or 0.57 percent to 2,355.56, and the Standard & Poor's 500 rose 8.34 or 0.61 percent to 1,376.94.
Tokyo's Nikkei 225 closed at 16,788.82 on a gain of 137.19 or 0.82 percent, and London's FTSE 100 rose 11.50 or 0.19 percent to settled at 6,166.70.
