Today, per Nasdaq.com, the Dow Jones Industrial Average rose by 4.49 points to 13107.48, the S&P 500 went up 1.19 points to 1410.49, and the NASDAQ gained 4.05 points to close at 3081.19. The average of the three gains is less than 0.1%.
That didn't stop the disseminators of CNN Money's email at the close of business from interpreting the result as being due to "signs of stronger U.S.growth." Huh?
When you increase demand for something, its price should go up.
In the case of bonds, if the demand for them increases, their price should go up, and their effective interest-rate yield should go down.
That didn't happen on Friday when the Federal Reserve began executing its second round of "money from nothing" quantitative easing. Even though the Fed increased demand, bond prices went down and yields went up.
Why? If you read a late Friday afternoon report by the Associated Press's Matthew Craft you essentially get a bunch of blubbering "I don't know" statements (bolds after headline are mine):