7/1/2010

A rally in corporate bonds ran from late 2008 through the first quarter of 2010 and into the second quarter, but it has run out of steam and might be slow to ramp back up, according to The Wall Street Journal. The European sovereign-debt crisis that emerged in April contributed to the slowdown. Bond yields relative to Treasurys surged, debt issuance cooled, and investors sold high-yield bonds and other riskier investments.

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