Article: The price that U.S. Treasury bonds command on the market plunged in recent weeks, meaning that lenders are demanding higher returns in order to loan Washington money with which to finance the sundry mischief Washington does.(The Week)(Brief article)

The price that U.S. Treasury bonds command on the market plunged in recent weeks, meaning that lenders are demanding higher returns in order to loan Washington money with which to finance the sundry mischief Washington does. The "yield curve"--i.e., bond investors' profit, which naturally moves in the opposite direction of bonds' prices--is rising and steepening. There are two interpretations of this. The first is that panicked stock-market investors who fled to the relative safety of Treasury bonds are once more sallying out in search of higher returns. The other interpretation is that the relative safety of Treasury bonds is being called into question. Even though ...

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