These should be good times for bonds. The Federal Reserve has slashed interest rates and may again.
Stocks are down, the dollar is strong and talk of a recession is in the air.
Bonds, a traditional haven for many investors, should be hot. The bond market is sending a comforting signal about the economy, at least according to a number of bond pros. Prices of long-term bonds rise when there is little fear of inflation and lots of fear that economic growth is slowing. Conversely, when investors are selling long-term bonds, driving their prices down, it can mean that expectations for growth are picking up. The yield on the benchmark 10-year Treasury note moved lower yesterday, as bond prices rose.