Treasurys up slightly after bin Laden's death

NEW YORK (AP) — Treasury prices inched up Monday as investors weighed the news of Osama bin Laden’s death.

The price of the 10-year Treasury note rose 9.37 cents per $100 invested in late trading. Its yield, which moves in the opposite direction, fell to 3.28 percent from 3.29 percent late Friday.

Traders initially sold off government bonds after President Barack Obama said that bin Laden, the al-Qaida chief behind the Sept. 11, 2001 attacks, had been killed by U.S. forces in Pakistan. But investors eventually returned to the market on the belief that the threat of terrorism had not changed materially.

Traders also shrugged off a report that showed manufacturing activity grew for the 21st straight month in April.

In other trading, the price of the 30-year Treasury bond rose 31.2 cents per $100 invested, while its yield fell to 4.38 percent from 4.40 percent late Friday. The yield on the two-year note was unchanged at 0.61 percent.

In the market for short-term Treasury bills, the three-month T-bill paid a 0.03 percent yield. Its discount was 0.04 percent.

Commodities Review:

FALLING GRAINS: Corn prices fell 3 percent on expectations that planting will pick up this week in parts of the western Corn Belt because of drier weather. Wheat and soybeans also fell.

BIN LADEN IMPACT: With the exception of gold and oil, commodities not affected much by concerns about possible extremist retaliation after U.S. forces killed Osama bin Laden Sunday in Pakistan. Gold settled slightly higher while oil fell slightly.

DOLLAR’S EFFECT: Many commodities benefited from a weaker dollar. Since commodities are priced in dollars, a weaker dollar makes them more of a bargain for buyers using other currencies.