US crisis: US bond market opens high

NEWS US bond markets surged this morning as traders rushed to invest cash in the absence of stock market trading. After a two-day hiatus yields on bonds opened high, but fell to record lows as investors cashed in on the rally. Many insurance firms were forced to sell their issues to raise cash to foot damage bills. Yields on short-term investments fell sharply as traders rushed to offload them. Longer-term investments remained more stable. US stock markets are due to re-open Monday. In London the FTSE was boosted by the bond rally and closed 1.3 per cent up.