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Bonds and Market Interest Rates

Increases within market interest rates are probably to be related with: (1) people’s increasing desires for vast “nest eggs” for security while they retire. (2) bursting a speculative bubble into prices for hi-tech stocks. (3) increased pessimism regarding the profitability of economic investment. (4) declines in the market prices of bonds. (5) skepticism about the solvency of the Social Security trust fund.

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