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The rally in stocks eased demand for bonds.
Bond purchases increase the demand for bonds, which raises their price.
Less investor demand for bonds raises their yields, and consequently, lifts the interest that governments pay to bondholders.
Securities firms have been eliminating mortgage jobs after record foreclosures sapped demand for bonds backed by home loans.
Treasury Prices Fall By Bloomberg News Treasury bond prices plunged yesterday as the rally in stocks stunted demand for bonds.
Others focus on technical shifts in the demand for bonds, such as pension funds' increased desire for longer-duration assets.
Similar(20)
Demand for bond insurance waned in the last year as investors increased their willingness to take risk.
It could also lead to less demand for bond insurance at a time when several big guarantors are faltering.
In January campaigners forced the government to drop a plan to put convicts to work on fishing boats a policy probably intended to dampen demand for bonded labour.
And once the downgrade threat has passed, demand for bond insurance will surge.
Volatility in the financial sector has led to declines in the ratings of bond insurers like Ambac and competitor MBIA, and the demand for bond insurance has declined.
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