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As these developing economies slow, bonds now look like a better bet than stocks.
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In December, the Fed announced it would slow bond purchases to $75 billion a month.
The proposed rule, they said, would slow bond trading, making it harder for them to execute their strategies.
The slowest bonds to return are those linked to home mortgages, the structured products that caused the most problems during the crisis.
The main effect of slower bond purchases may be a weakening of Beijing's influence in Washington as the Treasury becomes less reliant on purchases by the Chinese central bank.
"When you're not winning the World Series, it's hard to slow down," Bonds said.
As borrowers have defaulted and home sales across the nation in the middle and low price ranges have been slow, the bonds have lost some value.
"If stocks are slow and bonds are static, you can invest in art.
The U.S. Federal Reserve's indication that it may slow its bond-purchasing program has exacerbated that risk, as some of the money the Fed has been pumping into U.S. bonds has seeped into emerging markets like Turkey.
Speculation that the Fed might soon slow its bond-buying programme continues to hit bullion.
Investors remain nervous about how soon America's central bank will slow its bond-buying programme.
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