STOCKS hit record heights yesterday as bonds rallied and interest rates fell amid the latest hint of moderation in the US economy.

On Wall Street, the Dow Jones industrial average gained 52.45 points to close at 5,687.50, finishing about two points shy of the blue chip barometer's all time high at 5,689.74, set on April 3rd.

Broader measures staged a strong advance too, with the major indexes pushing into record territory.

Stocks followed bonds higher as the yield on 30 year Treasuries - a benchmark used to determine the interest charged on many loans - fell below 6.9 per cent.