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Old 05-03-2013, 8:36 AM
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huntingsocal huntingsocal is offline
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Default April Jobs Report: Good for stocks, not bonds

seems we were just talking about this yesterday

smoke em if you got em folks....low rates that is

"Good news for the economy, however, is bad news for bonds. Bonds are IOUs, and as the economy improves, demand for loans increases, and interest rates rise. Rising rates, in turn, drive down the price of bonds.

In recent days, the yield on benchmark U.S. Treasury notes hit a 2013 low of 1.62%. The yield, which moves opposite to the price, hit 1.73% Friday morning as investors jumped into stocks and out of bonds.

The report also means that the Federal Reserve may not increase its program of purchasing bonds to stimulate the economy, as was speculated before the report. "This keeps the Fed in a status quo position," Hamrich says."
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