treasury bonds

Time to Switch From Bonds
to Stocks?

Some investment strategists say it's unwise to "fight the Fed." And right now, Chairman Bernanke wants investors to move into riskier assets, particularly stocks. But these strategists also point to pitfalls if investors aren't careful about how they shift assets.

Citing 'Insufficient' Growth, Fed Keeps Policy Steady

The Federal Reserve Tuesday kept its current accommodative monetary policy going steadily and continued its program of quantitative easing, saying that the economic recovery is continuing, but the growth rate "has been insufficient to bring down unemployment."

Treasury Yields Rise on Optimism About World Economy

Treasury yields hit a six-month high Monday on optimism about the world economy and concern about the U.S. deficit. Yields have been steadying climbing as investors bet that a stronger world economy will lead to higher interest rates, Reuters reported.

Treasury Bonds: From Ultra-Safe to Battered and Bruised

The bonds have the full backing of the U.S. government. But investors this week may be waking up to an entirely different risk: the alarming drop in bond values and rising yields that brightening economic prospects can bring.

Tax Cut Deal May Incite Bond Vigilantes, 'Dr. Doom' Warns

Nouriel Roubini, the NYU economics professor who has earned the nickname "Dr. Doom" for his predictions, says he's concerned the tax cut compromise struck by President Obama and GOP leaders could expose the U.S. to bond vigilantes who will drive up bond yields, resulting in higher borrowing costs for the federal government.

Bernanke Defends QE2 Plan to Boost Economy

A day after the the Federal Reserve announced a second round of quantitative easing measures to stimulate the economy, Fed Chairman Ben Bernanke responded to critics of QE2 in a Washington Post op-ed that explained how the bond purchases will work, and why they won't spark inflation.

Fed Will Create More Money, but Will It Help?

Just about everyone expects the Federal Reserve to announce a new program of buying bonds with the goal of stimulating the economy. But not many observers think it's a good idea -- and the chorus of critics is only getting louder.

Why the Fed's Economic Plan Is Failing

Bernanke & Co.'s zero-interest-rate policy is backfiring or having even more pernicious results. Only the wealthy benefit from rising financial assets, as average Americans -- encouraged to add to their indebtedness -- are further impoverished. Risky speculation is again being rewarded.

2010 U.S. Budget Deficit Comes in Below Expectations

Investors received another sign Friday that the U.S. economy is continuing to heal: The 2010 U.S. budget deficit came in at a smaller-than-predicted $1.29 trillion. Though it was still the second-highest deficit on record, the numbers reflect growth in tax revenues, and thus in the economy.

Fed's Hoenig Warns Against Further Monetary Action

Kansas City Federal Reserve President Thomas Hoenig broke ranks with some of his fellow regional Federal Reserve executives Tuesday, warning against further monetary action as a way to spur economic activity.

The New Allure
of Emerging-Market Debt

Yields on emerging-market debt funds and exchange-traded funds are certainly enticing these days, especially compared to U.S. Treasurys. Also attractive are the added benefits of portfolio diversification and currency appreciation. But the risks can't be overlooked.

Chicago Fed's Evans Pitches Monetary Action While Economist Stiglitz Warns Against It

Federal Reserve Bank of Chicago President Charles Evans proposed further monetary action on the part of the Federal Reserve, including purchasing more Treasury bonds to cut the cost of borrowing, while lowering his forecast for U.S. economic growth, the Wall Street Journal reported. Meanwhile, Nobel Prize winning economist Joseph Stiglitz warned against such a policy, saying that monetary action would wreak havoc on the foreign-exchange markets, according to Reuters.

Should You Join the Crowd Piling Into Gold?

Thanks to the Greek debt crisis and other economic shocks, investors have been rushing into gold all year. Is this just a herd mentality at work, or is it a wise assessment of the economic road that lies ahead?

Hedge Your Risk With Mixed-Asset Mutual Funds

With stocks underperforming so far in 2010, and Treasury bond yields low, too, Standard & Poor's Equity Research suggests investing in mixed-asset mutual funds, which hold a combination of stocks and bonds to capture the strengths of both asset classes with less volatility.

Double-Dip Recession? Yield Curve Says No

Despite what so many pundits say, the most accurate economic predictor -- the yield curve -- says we're not heading for a double-dip recession. But don't celebrate too much: We're still in the recession that started in 2007, and projections predict continued sluggish growth ahead.

Why an M&A Boom Could Be Just Around the Corner

Fears of an economic slowdown have sent stocks reeling and bonds soaring. With companies sitting on record piles of cash and easy credit available, this may lay the foundation for a potential mergers and acquisitions boom -- and help revive equities.

The Treasury Bond Bubble: A Survival Guide for Investors

With more big names raising concerns about overheated T-bonds, what's an investor with a Treasury-heavy portfolio to do? Some ideas: Consider corporate bonds or perhaps stick with government debt, but only short-term securities.

Investors Racing to Safety in Treasurys Could Get Burned

Investors spooked by deflation and a possible double dip could be adding much more risk in buying Treasurys at current prices than they realize. Clear evidence of collapsing prices is scant. And some shrewd investors have been exiting Treasurys even as others stream in.

Fear Is Rising, but Stocks Are Looking Cheap

Plenty of good news may be getting overlooked in a market gripped by one form anxiety after another. That pervasive fear has investors crowding into government bonds. It could also create a good window to get into undervalued stocks.

ETFs at Midyear: Investments Keep Pouring In

The first half of 2010 has been anything but dull for exchange-traded fund investors. ETF assets in the U.S. decreased 0.4% to $772 billion as of June 30, but that actually indicates a serious inflow of cash: Equity markets, as measured by the S&P 500, fell 8.9% during the period.

Stimulus Spending: Less Argument, More Action

The academic tussle over stimulus spending is a sign that the Establishment has run out of ideas about how to turn around a limping economy. America needs effective policy responses now -- not a raging battle in ivory towers.

In This Market, What Should Bond Investors Do?

The stock market's volatility has caused some investors to seek safety in bonds. But with the recent European debt crisis, interest rates movements have surprised investors. Here are some smart bond investing strategies for an uncertain rate environment.

U.S. Deficit for Sale, But Who's Buying?

The U.S. heads for a record $1.56 trillion deficit this year, but who will fund that debt? The largest Treasury holders, China and Japan, are cutting back and no other obvious takers have stepped forward.

Despite All the Fear, a Return to Normal

The Fed's surprise move to raise its discount rate is just the latest event that unnerved investors. But a closer look what's happening in the U.S., China and Europe suggests that after years of economic crisis, things are starting to work the way they're supposed to again.