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By Jason Stipp and Jeremy Glaser | 06-20-2013 12:00 PM

The Friday Five

Five stats from the market and the stories behind them. This week: Treasury yields on the rise, a nine-month low in China, and more.

Jason Stipp: I'm Jason Stipp for Morningstar, and welcome to The Friday Five: five stats from the market and the stories behind them. Joining me, as always, with The Friday Five is Morningstar markets editor Jeremy Glaser.

Jeremy, thanks for being here.

Jeremy Glaser: Glad to be here, Jason.

Stipp: What do you have for The Friday Five this week?

Glaser: We're going to look at the number 2.3%, $21.6 billion, 9, 2%, and final 40 years.

Stipp: 2.3% is where the 10-year Treasury rate stands right now. [Editor's note: Yields on the 10-year Treasury bonds rose to nearly 2.5% after this segment was filmed.] It's up sizably after some recent Fed statements. What's the latest on this news?

Glaser: You're right, the bonds have had a pretty big move since the market has really started to get worried about the so-called "Fed taper," which is the reduction in purchases of mortgage-backed securities, which many thought might have been quite a while away. And now we hear from Bernanke, particularly this week, that it could happen, if everything goes right in the economy, as soon as the end of this year, that we could start to see the beginning of the taper.

But I think investors shouldn't be overly concerned about it. They should be focused on it, it's important, but it's not the be all and end all of what's happening in investing. The taper is only going to happen if the underlying economy looks pretty strong. Right now the Fed has some pretty bullish assumptions about what they think is going to happen. If those don't get hit, if those numbers don't happen, I don't think the Fed is going to feel obligated to start tapering, because they've said that they might start doing it at the end of the year. They've shown us that they're nothing if not flexible during this entire crisis, starting policies that would have been inconceivable, say, in like 2007 or 2008 before the crisis began.

I think that's going to happen here, that if the economy looks like it's on very solid ground, growth is starting to accelerate, employment growth looks pretty good, they're going to feel like they can taper and the economy will be able to handle that, particularly given that they're still going to have an enormous balance sheet compared to historical levels. It's not like they're going to start selling off any of these bonds anytime soon. I think that was made pretty clear.

Then if the economy doesn't look good, they won't do it, or if things go bad, they'll continue to buy more bonds again. They'll be able to go back in there. Given where inflation is right now, they have the flexibility to do that without worrying about price levels getting away from them, and I think that they will if Bernanke is there. If he leaves, whoever his successor will be will probably do that as well.

It's important, yes, but it shouldn't be the be all and end all of what you're thinking about when evaluating the economy, when evaluating your stock investments. Things like corporate earnings, what's happening with household formation, are also extremely important.

Stipp: $21.6 billion is the price that DISH Network won't beat in the quest for Sprint. This is an ongoing saga. What's the latest news?

Glaser: This one seems like it just doesn't end, and at least part of it seems to be coming to somewhat of a conclusion.

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