Question: I'm 26 and want to set up a diversified portfolio for retirement. I'm almost totally invested in stocks, but I know that I should put some money into bonds. I really don't understand how they work, however, and I don't feel comfortable investing in something I don't understand. For example, I think I get the basic idea of a bond, but when I see bond yields fluctuate, I get confused. Aren't they supposed to have a consistent interest rate? --John, Portchester, New York
U.S. Treasury debt prices eased Wednesday as unexpectedly strong inflation data encouraged a bout of profit-taking, though persistent signs of weakness in the housing sector limited the losses.
Bond prices rose on Monday, sending 30-year bonds up a point, after data showed signs of weakness in underlying retail sales and regional manufacturing.
Treasurys were mixed Friday as investors digested this week's record auctions and eyed gains in more risky markets.
Treasurys were mixed Thursday, with the 10-year note edging lower following a $16 billion auction of 30-year bonds that was met with lackluster demand.
Treasurys were mixed Tuesday after the most recent auction in this week's record $81 billion offering of U.S. debt drew strong demand.
Treasury prices mostly fell Monday, with the 10-year note holding modest gains, as the government prepares to sell $81 billion worth of debt this week and as stock markets advanced, undermining demand for safe haven assets.
The government is finding no shortage of willing buyers for its debt as the shaky economy continues to spur demand for safe haven assets.
Bond prices fell Wednesday after the Federal Reserve released its latest report showing signs of a stabilizing economy.
You already know that to protect yourself against stock market meltdowns, you should devote more of your portfolio to bonds as you age. But as you may have discovered recently, the downside protection you get can vary dramatically depending on the type of bonds you own.
Question: I'm 26 and want to set up a diversified portfolio for retirement. I'm almost totally invested in stocks, but I know that I should put some money into bonds. I really don't understand how they work, however, and I don't feel comfortable investing in something I don't understand. For example, I think I get the basic idea of a bond, but when I see bond yields fluctuate, I get confused. Aren't they supposed to have a consistent interest rate? --John, Portchester, New York
U.S. Treasury debt prices eased Wednesday as unexpectedly strong inflation data encouraged a bout of profit-taking, though persistent signs of weakness in the housing sector limited the losses.
Bond prices rose on Monday, sending 30-year bonds up a point, after data showed signs of weakness in underlying retail sales and regional manufacturing.
Treasurys were mixed Friday as investors digested this week's record auctions and eyed gains in more risky markets.
Treasurys were mixed Thursday, with the 10-year note edging lower following a $16 billion auction of 30-year bonds that was met with lackluster demand.
Treasurys were mixed Tuesday after the most recent auction in this week's record $81 billion offering of U.S. debt drew strong demand.
Treasury prices mostly fell Monday, with the 10-year note holding modest gains, as the government prepares to sell $81 billion worth of debt this week and as stock markets advanced, undermining demand for safe haven assets.
The government is finding no shortage of willing buyers for its debt as the shaky economy continues to spur demand for safe haven assets.
Bond prices fell Wednesday after the Federal Reserve released its latest report showing signs of a stabilizing economy.
You already know that to protect yourself against stock market meltdowns, you should devote more of your portfolio to bonds as you age. But as you may have discovered recently, the downside protection you get can vary dramatically depending on the type of bonds you own.
Question: My wife and I keep $20,000 in a passbook savings account as an emergency reserve. What's driving me crazy is that we're getting only 60 cents a month in interest. I like the security of the account and the immediate access, but 60 cents a month on 20 grand???? How can I do better? --Dale F., Waldorf, Maryland
Treasurys held gains Wednesday after the most recent phase of this week's $78 billion offering of U.S. debt received above-average demand.
Treasurys fell Monday after the government received strong demand for its sale of $7 billion worth of 10-year Treasury Inflation Protected Securities.
Stocks took a beating Thursday and didn't recover much Friday following the news that the job market took another turn for the worse in September.
Treasurys were mixed Tuesday, with the 30-year bond rising following a surprise drop in consumer confidence, while shorter-term debt was pressured by concerns about the Federal Reserve's interest rate policy.
Question: I just heard that the federal government is no longer insuring money market accounts for their $1 per share value. Is that correct? --Terry, Las Vegas, Nevada
Question: I'm 63 and planning to retire in three years. I'm considering investing in high-yield bond funds because they generate good income. Do you think I should do this and, if so, what percentage of my portfolio allocation should I devote to high-yield funds? --Frank, Groveport, Ohio
It looks as if China still can't get enough of one of America's finest exports: our debt.
As government regulators switch from crisis-mode to rescue mode, many of the biggest and most successful bailout programs are well on their way to extinction. But there are plenty of others that are gaining momentum as the economy heads toward a recovery.
A key bank-to-bank lending rate fell to its lowest point on record Wednesday, signaling continued easing of the once-frozen credit markets.
Treasurys enjoyed a small bounce Monday as a government auction of short-term notes attracted high demand and as investors sought shelter from a selloff in stocks.
When it comes time to plot out your investment strategy, you probably focus most of your attention on how equities are doing and pay scant attention to the inner workings of bonds. But ignore the fixed-income market at your peril.
After a week of record debt sales, analysts say Treasury prices could head higher in coming days as economic concerns come back to the forefront.
Treasury prices rose Thursday after the government sold $15 billion worth of 30-year bonds and a pair of weaker-than-expected economic reports vied with the Federal Reserve's more optimistic outlook.
Treasury prices held earlier gains Tuesday after the government saw strong demand for its sale of $37 billion worth of 3-year notes.
Treasury prices rose Friday after a record week of debt sales ended on a high note, easing some fears that foreign demand for U.S. debt is wearing thin.
Treasury prices were mostly higher Thursday after the government sold $28 billion in 7-year notes and stocks surged to a 9-month high.
Treasury prices were mixed Tuesday, with longer-term debt gaining as stocks tumbled and 2-year notes falling after a $42 billion auction of the securities.
The U.S. government began a record weekly sale of $200 billion in Treasury debt Monday with two issues that met solid demand.
The government's economic recovery efforts have brought many new and unfamiliar financial terms into the conversation. Here's a list of some we think are vital to understanding the recession and the government's attempts to fix it:
Brokerage TD Ameritrade agreed Monday to pay $456 million to settle a lawsuit involving the marketing of a debt class that ended up crippling investors.
Former Federal Reserve Chairman Alan Greenspan said the credit crunch should be over by now. But just ask anyone who has tried to get a loan recently, and they'll tell you a different story.
Treasurys were mixed Monday, with prices for longer-term bonds falling ahead of this week's auctions and prices for most other maturities rising as investors flocked to the relative safety of U.S. debt.
Treasurys drifted lower Tuesday as investors responded to a stronger than expected report on the housing market and a slower decline in regional manufacturing activity.
Known for his early warnings on Bear Stearns and Lehman Brothers, analyst Martin Weiss of Weiss Research is now sounding the alarm about state of California municipal bonds.
Treasury prices rebounded Friday ahead of a week full of auctions, government purchase operations, and the Federal Reserve's two day meeting.
One reason that investing is so challenging -- and so much fun -- is that owning a security that made you look like a genius one year can make you look like a dummy when the world changes the next year.
The U.S. Treasury bond market has been feeling distinctly unloved. A 10-year bond auction went badly on June 10 after Russia, Brazil and China said they were taking steps to diversify their foreign currency reserves.
The 10-year Treasury yield soared to 4% for the second day in a row Thursday - before backing off later in the session -- heightening inflation fears and threatening to upset the nascent signs of an economic recovery.
Treasury yields soared - with the benchmark 10-year yield briefly touching 4% - after the government sold $19 billion of 10-year notes and Russia said it would reduce its share of U.S. debt.
Government bond prices were mixed Tuesday, with shorter-term debt holding gains after a 3-year auction showed strong demand.
Treasury prices were mixed Monday after the Federal Reserve purchased $7.5 billion of its own debt, and the market braced itself for a busy issuance week.
Long-term Treasury bond yields continue to creep toward 4%, a level they haven't traded at since mid-October. And that's raising an interesting "Is the glass half-full or half-empty" type of debate.
One of the few safe market havens this year has been an old standby -- good old municipal bonds. But their solid performance might just be the result of overzealous retail investors.
The bond market rallied Friday at the end of a week with three major auctions of debt and sharp price swings.
It looked like a no-brainer. With a flight to quality last year pushing up U.S. Treasury bond prices and risky loans looking like losses waiting to happen, U.S. banks ploughed money into government bonds. And until about mid-May, when prices of 10-year securities topped 100 cents on the dollar, that looked like a good bet. Now, however, this safe haven isn't looking quite so secure.
Government bond prices fell Tuesday as investors weighed a heavy volume of supply headed to market this week, and a better-than-expected U.S. consumer confidence report.
Treasury prices fell Friday, extending sharp losses from the previous session and pushing longer-term yields to six-month highs, as investors fretted about pending debt sales next week.
Government bond prices rose Wednesday, with gains accelerating after the Federal Reserve released its most recent - and increasingly grim - forecast for the economy as the minutes from its April meeting.
Treasury prices fell Friday after better-than-expected readings on manufacturing and consumer sentiment encouraged investors to lock in profits at the end of an up week.
Fans of tax-free muni bonds know that inflation can gnaw at their returns. And as government spending stokes fears of rising inflation, investors might be looking for protection.
Treasury prices rose Monday as the Dow hit a triple-digit selloff after a two-month rally and the Federal Reserve prepared to buy U.S. debt throughout the week.
Want further proof that risk is no longer a four-letter word? Just take a look at what's going on in the bond market.
Treasury prices fell Thursday as investors responded to improved economic data and awaited results from the stress tests of U.S. banks.
Short-term lending rates touched another record low Wednesday in a sign of easier borrowing, while Treasury prices were mixed amid concerns about the banking sector and a major sale of U.S. debt.
The Securities and Exchange Commission has filed fraud charges against the operators of the Reserve Primary Fund for failing to provide important information to investors and trustees about the fund's exposure to Lehman Brothers.
A key interbank lending rate fell to its lowest point on record Tuesday as credit market conditions continue to ease.
Treasurys were mixed Monday as signs the economy may be stabilizing outweighed concerns about the record amounts of debt coming to the market this week.
Treasury prices held steady Thursday as investors weighed newfound optimism about the U.S. economy with a massive amount of supply headed to market.
So much for the Federal Reserve being able to hold long-term bond rates below 3%.
Treasurys fell Tuesday, giving back earlier gains, as investors chased higher returns in the stock market.
Treasurys edged lower Friday as investors responded to the Federal Reserve's ongoing campaign to buy $300 billion worth of U.S. debt.
Treasurys were mixed Wednesday as investors responded to reports on inflation and industrial production.
Treasurys drifted higher Tuesday as dour economic reports weighed on the market and the Federal Reserve bought another $7.3 billion in government debt.
Treasury prices rose Monday after the Federal Reserve purchased another $7.4 billion in government debt.
Government debt prices dropped Thursday as stocks rallied on Wells Fargo's first-quarter profit forecast.
Government debt prices rose after three auctions Tuesday, as investors sought safety while the stock market slipped.
Treasurys turned lower Monday as investors expressed concern over the flood of debt the government was bringing to market.
Treasurys edged lower Friday after the government reported that unemployment rose to a 25-year high.
Bond prices fell Thursday as investors fled to the stock market, which rallied at the start of a meeting of the world's largest economies.
Suddenly, cash is king again. With more and more Americans worried about their job security, the personal savings rate has climbed to 3.6%, up from next to nothing two years ago. Investors, meanwhile, have parked billions of dollars on the sidelines while they wait for better days. But with interest rates on savings near record lows, it pays to be savvy about where you stockpile your rainy-day funds. Here's what you should keep in mind.
Treasurys were mixed Wednesday, with longer term bonds gaining, after the Federal Reserve held its fourth purchase operation.
There's an old saying that goes, "You make your money in stocks but keep your money in bonds."
Treasury prices managed a modest advance Tuesday, trading thinly and reversing directions frequently on the last day of the first quarter of 2009.
Treasury prices rose Monday, fueled by uncertainty about the nation's economic recovery after the Obama administration rejected turnaround plans submitted by U.S. automakers General Motors Corp. and Chrysler LLC.
Like most investments with higher credit risk, the high-yield bond market took a huge hit in 2008 as investors fled to quality. But with the sector recently seeing its deepest discount ever - and even rallying a bit - some say it's time to test the waters again.
The credit market hasn't shown many signs of changing recently, but that actually may be a good thing.
The Federal Reserve hoped that low bond yields would help heat up the housing market and consumer lending, but low yields may also have helped to ignite the stock market.
Treasury prices fell Wednesday after another big auction raised concerns that the supply of U.S. debt securities could outweigh demand.
Now that even the biggest banks are battling for survival, traditionally safe investments suddenly look fallible.
Treasurys turned mixed Tuesday, with the 30-year bond advancing, after the Federal Reserve released details of its plan to buy longer-term issues and the government auctioned another $40 billion in U.S. debt.
Government debt prices fell Monday as stock prices soared after the Treasury Department unveiled its plan to partner with private investors to buy up banks' troubled assets.
Treasury prices fell Friday as investors stepped back from a recent runup to mull the Federal Reserve's plan to buy $300 billion of government bonds - a move the central bank has hinted at for months.
Treasury prices eased Thursday as investors responded to the Federal Reserve's plan to buy $300 billion in long-term government debt and braced for next week's auctions.
Treasury prices surged Wednesday, after the Federal Reserve said it would buy up to $300 billion in long-term Treasurys - a move the central bank has hinted at for months.
Treasurys retreated Tuesday, with the yield on the 10-year note rising above 3%, as stocks rallied in New York.
Government bonds fall Monday afternoon after stocks end lower, letting go of early gains and snapping a five-day rally.
Foreign purchases of U.S. debt increased in the first month of 2009, according to a Treasury report released Monday, easing some concerns that overseas investors have lost their appetite for U.S. debt.
Everyone is looking for foolproof investment advice. So let me give some: Don't assume that what's happened in the past will happen in the future, even if the past covers a long, long period.
Treasurys ended a volatile trading day mixed Friday as stocks managed to pull out gains for a fourth day in a row.
Treasurys advanced Thursday as investors responded to another strong auction of U.S. debt.
Treasury prices slumped Tuesday, as stocks rallied and investors responded to yet another large government debt auction.
Treasury prices held in a tight range Monday as investors weighed $180 billion worth of government debt auctions later in the week with U.S. stocks at 12-year lows.
Treasurys prices fell Friday as investors braced for an onslaught of new supply headed to market next week and stocks held onto small gains in a late-session rally.
If you're saving for a retirement decades away, Thursday's big drop in the stock market shouldn't worry you too much.
Treasury prices fell Wednesday as stocks rallied worldwide and investors remain concerned about record amounts of debt coming to the market.
Treasurys eased Tuesday amid concerns about growing supply and volatile stock prices.
Bond prices rose Monday as stocks buckled in response to a massive quarterly loss by insurance giant AIG and ongoing concerns about the economy.
Treasurys fell Thursday as the government auctioned off a record amount of debt this week and President Barack Obama outlined a budget that called for more spending.
David Swensen, chief investment officer at Yale University since 1985, manages its $17 billion endowment, which is known for consistently outperforming the market. In fact, it averaged returns of 17% annually over the past 10 years.
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