Bonds

The hard economic times in Europe have actually been a good thing for Germany, which can still borrow at low rates and benefit in export markets.

Iran has repeated its threat to block the Straight of Hormuz where about a-fifth of the world's oil passes through. In Italy today, investors seemed happy to buy up the country's debt.

We talk a lot about the stock market, but the real lifeblood of U.S. companies is the corporate bond market, which is twice as large.

A surprisingly successful Spanish bond sale and news of an increase in new home construction spurred markets to rally today.

My wife and I are in our early 60s, with a son in college. We have Roths and 401(k)s. I will get a pension from the state of North Carolina when I retire in a few years -- not so for my wife. What I need to know is: Is there a reason not to put so much of our savings in munis? (I would take the money out of some of our mutual funds.) I would not get munis from states with problematic economies; I would most likely get them from N.C. Also, what is the best way to purchase tax-free munis? Thanks! Stephen, Durham, NC

Lots of not-so-terrible news was enough to put markets in positive territory today, but not by much. It gives us a chance to take a step back and talk about something different. Bonds.

European countries agree to a deal on balanced budgets and debt reduction. A unanimous vote wasn't reached, but the BBC's Andrew Walker says investors already had limited expectations.