Personal Finance Daily: U.S. government bond funds surge in quarter

Personal Finance Daily SEPTEMBER 30, 2011 U.S. government bond funds surge in quarter By MarketWatch Don't miss these top stories: U.S. government bond funds leap in third quarter Inside the cloistered world of the diamond business Exchange rate, season make Europe trips a better deal Gold, silver bullion coins' 'fondle factor' Most fund investors looked at U.S. Treasury debt and state-issued debt favorably in the history-making third quarter, even as the bond market's already largely unchecked 2011 win streak gets more and more stretched, Rachel Koning Beals writes in the first in our three-part special report on third-quarter mutual fund and ETF performance. Look this weekend for reports on international and U.S. stock funds. See the special report, along with a recap of previous quarters' reports, here. Also on MarketWatch today, Kim Hjelmgaard offers an inside look at the cloistered world of the international diamond business and explains how the pricing of polished diamonds is a contested practice going through industry reexamination. — Anne Stanley , Managing Editor, Personal Finance U.S. government bond funds leap in third quarter It's been a history-making third quarter in financial markets, featuring events that renewed investor demand for the relative security of bond funds. The Fed dusted off a program to manipulate the yield curve that the U.S. central bank had last used some 50 years ago. And, the U.S.'s sterling credit rating got an unprecedented downgrade. These were two moves that in theory should have had a noticeable impact on the government-debt yield curve — but in reality caused barely a ripple. Read more: U.S. government bond funds leap in third quarter. Diamond prices latest frontier in industry battle Diamonds, coveted by millions of people around the world, undertake a convoluted journey from the earth's interior to a prized consumer object capable of holding deep emotional meaning. Read more diamond prices latest frontier in industry battle. Awaiting FHA changes on refinancing The wheels of government grind slowly, Lew Sichelman writes, but those who refinance their FHA-insured loans could, someday, be in for a big payday. Read more: Awaiting FHA changes on refinancing. Currency rates, season make Europe a deal If you called off your summer European trip this year because airfares skyrocketed and the euro/dollar exchange rate meant that meals had to be kept to a minimum, you might want to start packing now. Read more: Currency rates, season make Europe a deal. ECONOMY AND POLITICS Incomes fall for first time in almost two years Personal income declines in August for the first time since October 2009, easing 0.1%, as consumer spending moderates from a strong pace in July. The savings rate hits its lowest level since November 2009. Read more: Incomes fall for first time in almost two years. Consumer sentiment rises in September After tumbling in August, a gauge of consumer sentiment rises in September, while remaining at relatively low levels, according to data from Thomson Reuters/University of Michigan. Read more: Consumer sentiment rises in September. China PMI points to flat September activity HSBC's survey of Chinese purchasing managers for September comes in flat with its reading for August, indicating conditions remain marginally in contraction. Read more: China PMI points to flat September activity. U.S. missed chance to hike bank capital: report Regulators missed a chance to further strengthen the quality of the capital base of big banks by not waiting until the institutions were in a position to meet private Federal Reserve guidance for paying back taxpayer-infusions, a watchdog reports. Read more: U.S. missed change to hike bank capital. INVESTING Gold, silver bullion coins and their 'fondle factor' If you're looking for a safer place to park your money these days, gold and silver bullion coins may be it, but don't expect to make a quick buck. Read more: Gold, silver bullion coins' 'fondle factor.' Market's dividend yield higher than 10-year Treasury note's Believe it or not, the stock and bond markets are behaving in a way that, with only one exception at the depths of the 2008-2009 credit crisis, they have not since 1958 — 53 years ago: The stock market's dividend yield is now above the interest rate on the 10-year Treasury note, writes Mark Hulbert. Read more: Market's dividend yield higher than 10-year Treasury note's. The King of Balloons isn't just a blowhard Treb Heining started small as a balloon vendor at Disneyland. Now, he's transformed the whole industry, Al Lewis reports. Read more: The king of balloons isn't just a blowhard. Dipping into savings isn't a long-term growth plan The problem in the economy isn't spending, it's incomes, writes Rex Nutting. Read more: Dipping into savings isn't a long-term growth plan. Many markets are deep in bear territory The S&P may not technically be in bear-market territory yet, but many market sectors are. And huge swaths of overseas markets are deep in a real bear market. Read more: Many markets are deep in bear territory, Get the latest news on our mobile site: http://www.marketwatch.com/m MarketWatch has sent you this newsletter because you signed up to receive it. To ensure you receive this newsletter in the future, please add marketwatchmail.com to your list of approved senders. 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