NEW YORK – Stocks are opening sharply higher as investors rush to lay bets on a broad economic recovery following the weekend announcement that the U.S. government is bailing out mortgage lenders Fannie Mae and Freddie Mac. The Dow Jones industrial average jumped more than 325 points.

Bond prices are falling sharply Monday as emboldened investors looked for riskier but higher-yielding bets.

The announcement Sunday that the Treasury Department was seizing control of the companies, which own or back about half the nation's mortgage debt, brushed aside investors' persistent worries that the companies would be felled by a spike in bad mortgage debt.

The Dow is up 330 at the 11,551 level.