[shoover]

There was a relatively large upward movement in yields today (and corresponding downward movement in price).

I bought a few with cash on hand in the retirement and college savings accounts.

From Google Finance:

  Bonds [yields]
  3 Month	0.42%	+0.02 (5.00%)
  6 Month	0.53%	+0.03 (6.00%)
  2 Year	0.90%	+0.07 (8.43%)
  5 Year	1.48%	+0.12 (8.82%)
  10 Year	2.07%	+0.12 (6.15%)
  30 Year	2.86%	+0.10 (3.62%)

[illumin8]

This is actually much more indicative of the economic direction the market thinks we will be headed in. Hint: it's not good.

The bond market is extraordinarily efficient at pricing risk, and right now, they're beginning to price a significant risk of a long-term US default.

[b_emery]

So buyers of these things think interest rates will be lower in the future (eg due to poor economy and further stimulus perhaps?)

[shoover]

Yes, or at least as insurance in case interest do go lower.