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MONEY AND INTEREST RATES Bonds soared as investors took refuge from falling stockmarkets.
Susan Abbott, a managing director at Moody's Investors Service, which rates bonds, called the plan a glimmer of hope.
Given the likelihood of increased inflation and climbing interest rates, bonds may not be the safest place anymore.
New York today is still considered to be a more attractive place to work and live, said Mr. Kurtter, who rates bonds for cities and states nationwide.
Even with a threat of higher interest rates, bonds often rally when stocks fall sharply as investors move out of stocks.
"The prospect of protected negotiations will create a period of volatility in exchange rates, bonds and equities which will continue until concrete decisions over debt and currency are made," Cotton warned.
Similar(50)
With yesterday's decline in rates, bond prices soared.
Given the current level of interest rates, bond funds will be challenged to post positive returns in 2004, analysts said.
It will very slightly raise mortgage rates, bond yields, and so on, and that will slightly dampen economic activity.
But the money is all converted with the real-time exchange rates, Bond tells me.
If inflation and growth are higher, then long term interest rates (bond yields) should be higher as well.
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