US bonds bounce back

The Federal Reserve's second rate cut in a month was aimed at the feeble US economy, not the bond market. But you would not know it from the goings on in bondland these days. Even though Treasury yields have edged higher since the Fed began reducing rates last month, bonds that trade at a spread to government debt are experiencing a revival of sorts. Since its rate cut on 3 January, spreads between the riskiest corporate bonds and Treasuries have narrowed, suggesting investors are more willing to take their chances with lesser credits. The reason is that the Fed is pulling out all the stop...