Bonds Scream Recession

Stock and bond investors continued to take divergent views of the economy Thursday.

Treasury bonds soared, pushing the yield on the 10-year note to an 11-month low. The sharp fall in Treasury yields, which fall as prices rise, clearly betrays an expectation that the economy will slow.

But stock prices also rose Thursday, led by a sharp rally in the homebuilders -- considered by some observers to be among the economy's most vulnerable sectors. Stock investors, therefore, seem to be betting the economy will do just fine. ...