BOND

Treasury yields have surged to levels not seen in nearly two decades, raising borrowing costs for American consumers and impacting mortgages and auto loans amid inflation and fiscal concerns.

The S&P 500 fell 1.3% on a forex related move, after EUR/USD traded down to an eleven-month low.Among the major averages, the Dow Jones Industrial Average fell 1.1% to 12151. The S&P pulled back 1.3% to 1249, below its 200-day moving average, while the NASDAQ dropped 1.1% to 2267.

Morningstar has again launched its yearly pick for the top fixed-income managers of the year. The tough criterion will again focus on how these managers delivered outstanding returns based on a sound strategy for the long term and not just on the highest returns made for the fiscal year.

Emerging markets are again at the forefront of investment portfolios in 2012 as the dangers of inflation and stagnation had all been washed off by the tight monetary policies this year, a senior investment manager said.