A boom in bonds
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SCOTT JAGOW: In a couple hours, we get the numbers on new home sales for August. I'll bet you a cup of coffee and a bagel they're gonna be down. But ya know, one beneficiary of the housing market slowdown is the bond market. Ashley Milne-Tyte reports.
ASHLEY MILNE-TYTE: The days of home owners using their homes as ATMs seem to be over. And that combined with a generally slowing economy has investors turning to the bond markets.
Marilyn Cohen is president of Envision Capital Management. She says these days, there's just less demand for money to fuel purchases.
MARILYN COHEN:"When there's less demand for money that usually follows with interest rates going down and all bond prices moving up. And that's what we're seeing now, is the players and speculators in the bond market are all betting that the economy will continue to slow."
A pretty good bet, Cohen says.
She expects housing and employment data in particular to stay soft in the short term and bond prices to keep rising.
In New York, I'm Ashley Milne-Tyte for Marketplace.