Bonds

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.

The new initiative seeks citizens' help to bail the country out. Even so, towering debt remains a huge problem for Italy.