Bond firms hoard Treasuries as Europe's debt crisis persists

The largest bond firms on Wall Street are shifting money to U.S. Treasuries, driving the biggest government-bond rally in at least seven years. The 18 primary dealers that trade with the Federal Reserve held more than $37 billion in government debt as of May 26, according to data from the Fed. Meanwhile, the firms' non-Treasury holdings of fixed-income assets declined 17%.