Bond-market action signals investor confidence returning

High-yield bonds have staged a small rally since JPMorgan Chase took over Bear Stearns in mid-March, which will likely give Federal Reserve officials a bit of comfort when they meet next week to discuss interest rates. Yields on high-yield bonds have fallen, indicating that investors feel better about the financial outlook. However, the yield is still well above the record low spread of 2.4 reached in June 2007.

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