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8B – Daily News – Wednesday, November 10, 2010 NEW YORK (AP) — Stocks and government bonds fell Tuesday as commodities rallied to two-year highs. Silver, soybeans and copper jumped to levels last seen in October 2008 as investors moved money into hard assets in antici- pation that a massive eco- nomic stimulus plan announced by the Federal Reserve last week will continue to weaken the dollar. Investors are expecting that commodi- ties will hold their value even if the dollar falls. The Fed plans to buy $600 billion in U.S. gov- ernment bonds over the next six months in an effort to push interest rates even lower and encourage borrowing and spending. It’s a tactic called quantitative easing, one that the Fed used suc- Stocks and bonds stumble while commodities soar Wall Street The 30-year bond was- cessfully in 2008 to restore confidence in financial markets at the height of the credit crisis. ‘‘The market is still being driven by the Fed’s actions and it will be for a while,’’ Dirk van Dijk, senior equity strategist at Zacks.com. Treasury prices fell despite a strong auction of 10-year notes. Investors are concerned that demand may be weak for 30-year bonds in an auc- tion upcoming Wednes- day. The price of the 30- year bond was down sharply, losing about two full points, or $2 per $100 in face value. Its yield rose to 4.23 percent, the highest level since June 10. n’t one of the maturities being heavily targeted by the Fed’s purchasing pro- gram announced last week, and its long maturi- ty makes it more sensitive to inflation than shorter- term notes. Many investors worry that the Fed’s bond-buy- ing program could lead to a jump in inflation down the line, which would erode the value of all bonds since their fixed payouts would become worth less over time. With the Fed now focused on encouraging some infla- tion, ‘‘it might be hard for investors to convince themselves to buy’’ at Wednesday’s auction, said John Briggs, a fixed income analyst at RBS. The dollar has been falling against other cur- rencies in anticipation of The Red Bluff Daily News is pleased to offer Geographic Targeting on America’s Leading Online Network… the Fed’s stimulus pro- gram, but it gained 0.9 percent against an index of other currencies Tues- day as new troubles emerged in Ireland, one of the weaker countries that use the euro, Europe’s shared currency. Investors are con- cerned that Ireland’s gov- ernment will not be able to pass additional spend- ing cuts and will have to ask for financial assis- tance. Greece, another member of the euro club, was forced to seek a bailout from other Euro- pean countries in April after investors dumped the countries bonds in the wake of a fiscal crisis there. The Dow Jones indus- trial average fell 60.09, or 0.5 percent, to 11,346.75. The broader Standard & Poor’s 500 index fell 9.85, or 0.8 percent, to 1,213.40, while the tech- nology-focused Nasdaq composite index fell 17.07, or 0.7 percent, to 2,562.98. Every industry group within the S&P 500 fell. Financial shares, which tion. Silver rose, jumping 5.4 percent to settle at $28.906 an ounce. The metal’s large gains may be a result of traders buy- ing silver because it had fallen below its typical price relationship with gold. Gold usually trades at 50 times the price of silver, said Rick de los Reyes, a metals and min- ing analyst at T. Rowe Price. ‘‘Gold is someone’s fell 2.2 percent, were the worst performing industry group. Gold settled at $1.410.10 an ounce, up $6.90. The precious metal is hovering near record levels in dollar terms but is still well below its peak in the early 1980s after accounting for inflation. The weakening dollar has been benefiting gold as investors seek other assets seen as safe places to park money. Some gold investors see the metal as a hedge against national currencies losing their value as a result of infla- 22755 Antelope Blvd. Red Bluff, CA 96080 (530) 527-9166 LASSEN STEAK HOUSE Full Bar • 9 Beers On Tap Big Screen TVs • Pool Room Do you… •Offer services in a specific geographic area • Sell products online and ship only within a specific geographic area • Have an offline storefront where customers purchase products •Want to drive targeted visitors to different local sites of your national company • Need to test a specific location for market potential • Are legally restricted to advertising within a specific geographic region ...Then industry-leading Geographic Targeting solution is the right fit for you. 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