Cordell Eddings

Microsoft sold $10.8 billion of debt in its biggest bond sale on record, taking advantage of investor demand for the highest-rated corporate securities.

If you’re concerned that the Federal Reserve will derail the bond market when it finally starts raising interest rates, the last two tightening cycles suggest those worries may be overblown.

Investors of exchange-traded funds that buy U.S. government debt are signaling that economic-growth optimism is taking root.

The Federal Reserve’s attempt to lift inflationto a level that would reflect a healthier U.S. economy is starting to take hold in the bond market

The sudden slowdown in U.S. inflation has left Treasuries at the cheapest levels in almost two years, aiding the Federal Reserve’s efforts to tamp down long-term borrowing costs while the economy improves.

Pacific Investment Management Co.’s Bill Gross, manager of the world’s biggest bond fund, expects stocks and bonds to return less than 5 percent in 2013 as high unemployment persists, he wrote in a Twitter post.

The gap between U.S. bank deposits and loans is growing at the fastest pace in two years, providing lenders with more funds to buy bonds and temper the biggest sell-off in Treasuries since 2010.