Treasury prices moved higher Tuesday with the expectation that more dour economic data will again lead investors to shy away from stocks and commodities.Finding little in the way of return on investment in other markets, investors have placed conservative bets on the bond market. Recession fears and credit crisis anxiety have sent stocks falling in eight of 11 sessions thus far in November. Likewise, bonds have risen in seven of 10 sessions. The bond markets were closed on Veteran's Day while equities markets were open.
A government report on inflation for the month of October showed wholesale prices fell by 2.8% - the greatest amount in history. The huge decline showed consumer demand for goods continues to fall sharply. Consumer prices rose 0.4%.
Bonds may continue to rise for the rest of the week, which will bring a number of other economic indicators that are expected to be equally as disappointing. Investors likely will continue to buy up bonds as a safe-haven investment as stocks look for a market bottom.
Read More
