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The article discusses the performance of 10-year U.S. Treasury notes. On June 1, 2011 the yield on Treasuries reached its lowest level since December 2010. Pessimistic reports on manufacturing activity and job growth in the U.S. have made Treasuries popular with investors. However, some including Bill Gross of money-management company Pacific Investment Management Co. expect Treasury yields to rise.

The article reports that stock markets in the U.S. and abroad rose sharply on news that Germany might not insist Greece restructure its debt as a condition of receiving more financial assistance from Europe. Investors have feared that a restructuring could exacerbate debt crises in other struggling nations including Portugal, Spain, and Ireland.

The article reports that U.S. stock prices fell for the fourth consecutive week, as the Dow Jones Industrial Average fell by 0.6 percent in the last full week of trading in May, 2011. The average has declined by 2.9 percent for the entire month of May. It is the second consecutive May in which U.S. stock prices have declined.

The article discusses the potential impact on the prices of U.S. Treasury securities of the June, 2011 conclusion of the Federal Reserve's $600 billion Treasury-purchasing program. Some believe Treasury prices could actually rise if growth in the U.S. economy slows. Others, including Bill Gross of money-management firm Pacific Investment Management Co., say bond prices will fall once the Fed's initiative ends.

The article discusses long-term expectations for inflation for the U.S. economy. The gap between yields on plain U.S. Treasury securities and inflation-adjusted ones does not suggest investors are expecting inflation to escalate sharply. This and other indicators reflect a degree of confidence among investors that the Federal Reserve will be able to contain inflation.

The article discusses a difference of opinion between two bond-fund managers on how the bond market will react to the expected end of the U.S. Federal Reserve's program of buying government securities. Bill Gross of Pacific Investment Management Co. expects prices of U.S. Treasury bonds to decline, while Rick Rieder of BlackRock believes prices will remain stable or even rise some.

The article discusses an unintended decline in the U.S. federal funds rate. The Federal Reserve adjusts this rate when it wants to affect interest rates throughout the U.S. economy. A drop from 0.13% to 0.09% over a one-week period without any intervention by the Fed, though, has raised questions about whether the Fed will be able to manipulate the rate when it feels the need to.

The article discusses a shortage of U.S. Treasury securities in the overnight repurchase market. Rules implemented by the Dodd-Frank financial regulatory-reform law have made it too expensive for some banks to participate in the market, thus reducing the availability of Treasuries. The U.S. Federal Reserve's purchases of Treasuries have also diminished supply.

The article discusses a return to financial markets of trading activity characterized by short-term movements determined by investor attitudes toward risk, a pattern much in evidence during 2010. Investors seeking to embrace risk have been buying stocks, while U.S. Treasury bonds are a popular refuge for those fleeing risk.

The article discusses skepticism about an ongoing bull market in stocks. Since March, 2009 the Dow Jones Industrial Average has risen 86% while the Standard & Poor's 500 index has gained almost 100%. However, some worry that rising oil prices, inflation, and cessation of stimulative efforts by the U.S. Federal Reserve could conspire to push stocks down.

The article reports that various market and economic indicators have regained levels not seen since investment bank Lehman Brothers failed in 2008. Stock prices have doubled since that time, and merger activity has rebounded as well. Markets are seen to have benefited from the U.S. Federal Reserve's $600 billion program to purchase U.S. government securities, and it remains unclear how they will react if that program is not extended beyond June, 2011.

The article discusses rising mortgage rates in the U.S. During the second week of February, 2011 the fixed rate for a 30-year mortgage topped 5% for the first time since the spring of 2010. Although rising rates are an indication of gathering strength in the U.S. economy, they could also exert downward pressure on already-depressed housing prices.

The article reports that yields on 10-year U.S. Treasury bonds have risen to their highest levels since the spring of 2010, suggesting investors have become increasingly concerned about inflation. Short-term rates have remained stable, an indication that investors don't expect the U.S. Federal Reserve to take anti-inflationary measures.

The article reports that the U.S. Treasury Department is considering issuing bonds with maturities beyond 30 years. Treasury official Mary Miller dismissed the possibility of a 100-year bond, but indicated some lesser term might be possible. By extending bond maturities the U.S. could lock in currently-low interest rates for a longer period of time.

The article discusses financial-market reaction to political protests in Egypt. The Dow Jones Industrial Average declined over 166 points, and the Standard & Poor's 500 index lost 23.20 points. Oil gained 4% to finish at $89.34 per barrel. The price of insuring against the default of the sovereign debt of several countries including Morocco and Saudi Arabia rose.

The article reports that market fundamentals, rather than concerns about macroeconomic risks, seem to be playing an increasing role in how stocks, bonds, and commodities are priced. One indication is the breakdown in what has been a strong negative correlation between the U.S. dollar and Standard & Poor's 500 index since early 2009.

The article reports the the cost of insuring against default the sovereign debt of several nations including Ireland and Spain reached record highs as the European Union released guidelines for future bank bailouts that call for bondholders in the banks to sustain losses. Investors in European government securities apparently fear they could eventually be forced to absorb losses as well.

The article discusses expectations for the U.S. economy in 2011. Although some including Jack Ablin of Harris Private Bank believe the biggest risk to the economy is too-rapid growth, a majority of economists and analysts foresee modest growth and low inflation for 2011. Three possible scenarios for weak, moderate, and strong economic growth are described.

The article focuses on the effect the U.S. East coast December 27, 2010 snowstorm had on stock and bond trading. It states that the New York Stock Exchange Composite volume had the lowest full trading day of 2010, while bond trading was light with much of the trading for the U.S. Treasury Department's auction of two-year notes. It comments that a number of brokers worked from home offices and mentions the stories of several stock traders efforts to reach offices during the snowstorm.

The article reports that a rapid rise in yields on 10-year U.S. Treasury bonds has caused rates on 30-year mortgages to jump. By one estimate the average mortgage rate hit 5.09%, its highest level in 6 months. Yields on Treasuries have risen despite a $600 billion bond-purchasing program by the Federal Reserve aimed at pushing yields down.

The article discusses financial market results for December 14, 2010. The Dow Jones Industrial Average gained 47.98 points to finish at its highest level since September 8, 2008. The Nasdaq Composite Index added 2.81 points, and the Standard & Poor's 500 index closed 1.13 points higher on the day. The yield on ten-year U.S. Treasury notes hit a seven-month high.

The article discusses the impact of rising mortgage rates in the U.S. On December 9, 2010 the 30-year rate reached 4.61%, the highest level in several months. A spate of mortgage-refinancing activity by homeowners has likely been quelled by rising rates, which have also complicated efforts by the U.S. Federal Reserve to support the housing market.

The article discusses rising yields for both U.S. government bonds and municipal bonds in the aftermath of an agreement between U.S. President Barack Obama and Congressional Republicans on tax legislation. That pact is seen as promoting economic growth and adding to the budget deficit, developments that could push interest rates higher.

The article discusses evidence that stocks could soon begin to outperform bonds. Over a recent two-week period net inflows into bond funds were negative, while stocks could benefit from data that suggest an economic recovery in the U.S. might be gathering strength. The Dow Jones Industrial Average has gained almost 18% since early July, 2010.

The article reports that interest rates on U.S. government securities have risen despite initiation of a $600 billion security-purchase program by the U.S. Federal Reserve aimed at driving rates lower. Yields on government securities had fallen significantly in anticipation of the Fed's initiative, though, and despite the rise remain lower than in the spring of 2010.

The article discusses the favorable reaction to global markets to the U.S. Federal Reserve's announcement that it would buy $600 billion worth of U.S. government securities over an eight-month period. The Dow Jones Industrial Average rose almost 220 points, while stock markets in India, Japan, and China all enjoyed healthy gains.

The article discusses implications of the U.S. Federal Reserve's decision to buy $600 billion in U.S. government securities over an eight-month period. An anticipated decline in yields could prompt investors to move funds from government bonds into riskier assets including stocks. Prices in futures markets indicate investors don't expect the Fed to start raising interest rates before June, 2012.

The article discusses the waning market impact of expectations that the U.S. Federal Reserve will announce a program to purchase U.S. government bonds on November 3, 2010. Stock prices rose during the several weeks leading up to November, but have begun to decline some as published reports indicate the program might not be as large as once thought.

The article reports that the U.S. Treasury Department sold inflation-protected bonds with negative yields for the first time ever. The development suggests a belief among investors that the Federal Reserve's efforts against deflation are succeeding, and that inflation could rise in the future. If inflation doesn't materialize, bond investors could find themselves paying the government to borrow their money.

The article discusses the bond market's equivocal views on prospects for deflation and inflation in the U.S. Treasury Inflation Protected Securities (TIPS) issued by the U.S. Treasury protect investors from inflation and have risen close to 10% during 2010. Conventional Treasury securities, which would perform much better amid deflation rather than inflation, have appreciated about 9%.

The article reports that stock prices of major U.S. banks fell in response to worries over a possible crisis involving foreclosure on mortgage loans held by homeowners. Foreclosures have been suspended by several banks in response to reports that the documentation of many mortgage loans was improperly or illegally created and used in the foreclosure process.

The article discusses the increasing popularity among fixed-income investors of debt denominated in local currencies, particularly in emerging markets. In both Indonesia and Malaysia the fraction of local-currency public debt held by foreign investors has risen sharply. Such transactions shift foreign-exchange risk from bond issuers to investors.

The article discusses the strong demand for junk bonds. In September, 2010 prices for junk bonds reached levels not seen since 2007. During 2010 firms have sold a record $172 billion in junk bonds. In some instances companies have been able to sell securities with fewer covenants than usual, thus presenting additional risk to investors.

The article discusses a reviving market for leveraged debt. Since June of 2010, almost 25% of loans issued have been in connection with leveraged buyouts. In an environment of low interest rates some investors in search of higher yields find leveraged debt attractive. Fast-food chain Burger King is among firms that have been bought out in transactions involving leveraged debt.

The article discusses the investing climate two years after the collapse of investment bank Lehman Brothers Holdings Inc. in September 2008. Investors have gravitated towards U.S. Treasury bonds and other securities that provide reliable income streams. Investments in emerging markets have also gained in popularity. Conversely, holdings of equities in developed countries have declined by over $200 billion.

The article reports that corporations are taking advantage of low interest rates by issuing large volumes of debt. By one estimate some $51 billion in corporate bonds were sold during a two-day period in September, 2010. Health-care company Allergan Inc. raised $650 million by selling bonds with a yield of 3.375%, the lowest rate for a U.S. corporate ten-year bond in at least 15 years.

The article discusses growing demand among investors for the 30-year U.S. Treasury bond. Contributing factors include a belief on the part of investors that interest rates will remain low due to weakness in the U.S. economy, and a desire by mortgage investors to hedge against losses stemming from increased mortgage-refinancing activity.

The article reports that financial markets declined on renewed fears of a slowdown in the global economy. The Dow Jones Industrial Average lost over 265 points, while Japan's Nikkei Stock Index fell 1.6%. Among investors' concerns was that the U.S. Federal Reserve's plans to buy U.S. Treasury debt reflected continued weakness in the U.S. economy.

The article discusses the impact on yields for U.S. Treasury notes of the Federal Reserve Board's decision to buy more government bonds. Yields on ten-year notes fell to lows not seen for over a year once news of the decision was released. However, some investors believe the Board's buying program won't have much additional impact, and that the main determinant of yields will be the state of the U.S. economy.

The article discusses the fondness of Van Hoisington, founder of Hoisington Investment Management, for U.S. Treasury bonds. For almost 20 years he has invested exclusively in such securities. Depending upon his outlook for inflation, Hoisington buys either short-term Treasury bonds or 30-year bonds. In 2010 he is buying the longer-dated bonds in the belief that inflation will fall and perhaps lapse into deflation.

The article discusses U.S. financial market results for August 6, 2010. The Dow Jones industrial Average fell 21.42 points, the Nasdaq Composite index lost 4.59 points, and the Standard & Poor's 500 index finished 4.17 points lower on the day. Oil closed at $80.70 per barrel, and the yield on the 10-year U.S. Treasury note finished at 2.826%.

The article discusses the strong performance of bonds in comparison to stocks. While some believe this suggests stocks have become attractively priced, others think depressed stock prices reflect pessimism about the U.S. economy. A decline in private-sector borrowing could bode ill for the economy, and hence stocks.

The article reports that unusually low borrowing costs have prompted many corporations to issue debt. Restaurant chain McDonald's Corp. and consumer products company Kimberly-Clark Corp. are among firms that have so acted. Despite expectations, corporate bonds continue to be popular with investors, thus keeping companies' cost of debt down.

The article discusses signs that concerns about a financial crisis in Europe have begun to ease. Several indebted nations including Spain and Greece have seen their borrowing costs decline. The gap between interest paid on Greek and German sovereign debt has narrowed, and the euro has gained against the U.S. dollar.

The article discusses the popularity among investors of residential mortgage bonds backed by U.S. government guarantees. Amid signs of a struggling economy that include rising claims for unemployment benefits and declining manufacturing activity, demand for mortgage securities has driven down mortgage rates to lows not seen since the 1970s.

The article discusses U.S. financial market results for June 29, 2010.

The article discusses a potential short-term affect on U.S. Treasury notes of China's decision to allow the yuan to appreciate gradually against the U.S. dollar. China buys large quantities of Treasury securities, but a stronger yuan means it might need to buy fewer for the purpose of managing the yuan's value against the dollar. Consequently, interest rates on U.S. Treasury securities could rise.

The article discusses a lack of factors likely to drive stock prices substantially higher. Although interest rates remain low and China has indicated it will let the yuan appreciate some, an uncertain economic recovery, cutbacks in spending by governments around the world, and a debt crisis in Europe could all act to tamp down share prices.

The article reports that some U.S. investors are committing funds to both gold and U.S. Treasury bonds. Although historically these two investments move in opposite directions, they have both appreciated amid a sovereign debt crisis in Europe. A rise in inflation would tend to help gold and hurt Treasuries.

The article reports that Pacific Investment Management Co. (Pimco) has shifted its outlook on U.S. Treasury bonds. Previously Pimco, unlike rival firm BlackRock Inc., had expected Treasury prices to fall and interest rates to rise. Pimco has since begun purchasing Treasuries and upgraded its assessment of them from "underweight" to "neutral."