An Associated Press report that appeared in multiple newspapers (including the New York Times National print edition, but not the New York Times online) showed confusion about the fundamental principle that bond prices and interest rates move in opposite directions.
- Bond prices sank again. The yield on the 10-year Treasury note slid to 2.32 percent from 2.39 percent. Investment banks and insurers traded lower as well.
- Investors bought utility stocks and phone company stocks, which pay large dividends similar to bonds. Exelon gained $1.20, or 3.3 percent....
- - MARLEY JAY, Associated Press, US stocks eke out last-minute gain as utilities rise, Chicago Tribune, February 25, 2017
The fact that the prices of utility and phone company stocks, which are similar to bonds, increased, should have suggested to the author that bond prices would also be expected to rise. It appears the author was not only ignorant, but unthinking. Likewise the editor who reviewed the article before publication, if it was reviewed. Another possibility is that the article was produced by an AI program, in which case the program developer was at fault.