Credit : Traders Cautious as Bonds Edge Higher

Bond prices edged higher Tuesday in continued light dealings as traders waited for economic statistics due late in the week.

The Treasury’s bellwether 30-year bond rose 5/32 point, or $1.56 per $1,000 face amount, while its yield, which moves inversely to its price, slipped to 9.09% from 9.11% late Monday.

Government reports that could affect the market include Thursday’s figures on retail sales and Friday’s figures on the merchandise trade deficit, wholesale prices, industrial production and factory and business inventories.

The economic figures could affect the outlook for economic growth, inflation and whether the Federal Reserve will tighten or relax credit policy.

“This week is just marking time,” said Margaret D. Patel, senior vice president and director of fixed-income investments at Boston Economic Counsellors Inc. in Boston.

In the secondary market for Treasury bonds, prices of short-term notes rose between 1/32 point and 1/16 point, intermediate notes were up between 1/16 point and 1/8 point and long-term issues ranged from 1/8 point to 1/4 point higher, the Telerate Inc. financial reporting service said.

The movement of a point equals a $10 change in the price of a bond with a $1,000 face value.

The federal funds rate, the interest on overnight loans between banks, traded at 9.75%.