Archives for February 2011
Bonds Fed-Spooked
Investors Boot Treasurys, Anticipating End to Stimulus Treasury prices lost ground Friday for a fifth straight session as a key jobs report added to worries about inflation, boosting speculation that the Federal Reserve could start withdrawing its monetary stimulus for the economy earlier than many expected. An unexpected drop in the unemployment rate in the January nonfarm payrolls report followed robust manufacturing, service and jobs data earlier in the week, reinforcing a view among some market participants that the economic recovery is gaining strength. Bond yields, which move inversely to their prices, surged on the week—to the highest levels since…