The Wall Street Journal (June 5, 1995) recently reported: Alan Greenspan may not see a recession on
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The Wall Street Journal (June 5, 1995) recently reported: Alan Greenspan may not see a recession on the horizon, but it sure looks as if a few people in the bond market do. After a fierce month-long price rally, the bond market had another big day 584 Part 4 Liabilities and Stockholders’ Equity: A Closer Look Friday, with the price of 30-year bonds at one point equaling their largest one-day gain in a decade . . . Fueling the buying spree was a Labor Department report showing that nonfarm payrolls in May shrank by 101,000, a startling drop . . . The signs of economic weakness did not stop there ... April's previously reported employmentfigure—a decline of9,000jobs—was revised upward only slightly, by 2,000 jobs rather than the upward revision of50,000 or more Wall Street envisioned. REQUIRED: Explain why weak economic news would cause a rally in the bond market
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