Sentences with phrase «government bond buying»

On the other hand, the Bank of Japan has announced that it will begin an «unlimited» Japanese Government bond buying program.

Under its current asset - buying and lending tool, the BOJ limits the duration of government bonds it buys to three years because it wants to push down the cost of borrowing for companies, many of whom work in three - year investment cycles.

Not exact matches

The threat of a trade war would also freak out the overseas investors we count on to buy our government bonds, and keep our interest rates at super-low levels.

Under this hypothetical policy, governments transfer money directly to taxpayers to encourage spending, a handout funded by issuing bonds with a coupon of zero and no maturity date, which central banks buy.

Put 20 % or 30 % of your money into GICs or government bonds to fund your immediate needs, like paying a mortgage and buying food.

The answer is straightforward: The Bank of Japan can buy government bonds on the open market, paying for them with either currency or deposits at the Bank of Japan, what economists call high - powered money.

The BOJ currently makes the distinction because buying long - term government bonds for monetary easing could bind its hands on policy for longer than it wants and make a future exit from ultra-loose easing difficult.

The easiest way for the central bank to ramp up the size of its balance sheet would be to buy longer - dated government bonds.

It buys long - term government bonds, including those with durations longer than three years, in what is dubbed «rinban» market operations.

Canada's DBRS is the only credit rating agency willing to give Portugal an investment grade, which allows the European Central Bank to buy Portuguese government bonds.

The interest rate on 10 - year bonds was 1.79 % at the end of 2014 — about half as much as the federal government had to offer to get investors to buy its debt a decade ago.

There were a few dissents, but a majority of the Monetary Policy Committee also opted to create # 60 billion (about $ 100 billion) to buy government bonds over the next six months and # 10 billion to purchase corporate debt over 18 months.

It's similar to the U.S. government's quantitative easing, but rather than trying to buy government bonds to push interest rates lower — rates are already at zero — the goal is to push the yen down and combat chronic deflation.

QE (as it's known in shorthand) involves the central bank's buying financial assets like government bonds.

Buying corporate along with government bonds will increase your yield.

Rather than follow the Stalin model of turning an agrarian society of Russia into a state - owned industrial superpower like the USSR - killing millions of your own people in the process, incidentally - Myerson suggests that the government own all businesses by buying the stocks and bonds of all businesses as an «investment» in the private sector.

But «investors» is a funny word these days of central - bank craziness: the entity that buys every Japanese government bond that isn't nailed down is the Bank of Japan.

This is because the ECB faces a couple of restrictions when buying government bonds.

First, he believes that an investor in a low - cost S&P index fund who reinvests all dividends will do better — very likely substantially better — than an investor who buys a 17 - year government bond and reinvests all of his coupons in the same instrument.

When you buy bonds from a corporation, government or other entity, you're lending money to be paid back with interest at a specified time.

While it's better to invest than keep money under a mattress, buying risk free securities, such as guaranteed income certificates or low - yielding government bonds, could actually be riskier than purchasing higher returning products, says Ted Rechtshaffen, president and CEO of Toronto's TriDelta Financial Partners.

U.S. government bonds saw buying on Tuesday, pulling yields lower, after Secretary of State Rex Tillerson was ousted from the White House.

In its interactions with the government, the financial sector buys bonds (and also makes campaign contributions).

When you buy government bonds, you are loaning money to the government, which agrees to pay you back with interest.

Remember, if the government gives us a tax cut they'll still have to make up the budget shortfall somehow, chiefly by selling more bonds to American citizens (who happen to be the same people getting the tax cut) or foreigners (who will raise the money by selling us more of their goods and services, or buying less of ours).

The real reason may be that they provide flexibility: people who want to consume more can use their tax cut for that purpose; people who want to save more can use theirs to buy up the new government bonds.

«The central banks» plans for printing money to buy bonds from national governments running huge deficits can not be considered a long - term solution to debt problems.»

If you bought long - term government bonds in 1940, forty years later, your dollar was worth $ 0.37, and you weren't made whole until 1991!

The Wall Street firm, however, says it bought the block of bonds, priced at about 31 cents on the dollar, through a broker and did not interact directly with the government.

The decision to begin buying government bonds on the open market came after a debate that lasted months.

He said that the central bank would begin buying government bonds based on each country's share of the central bank's capital, which is commensurate with their population and gross domestic products.

It was almost exactly a year ago that the E.C.B. set eurozone precedent by buying government bonds and other assets.

Another way to facilitate green investments is for rich governments to buy down interest rates, which makes it more attractive to issue green bonds.

FRANKFURT — The European Central Bank said on Thursday that it would begin buying hundreds of billions of euros worth of government bonds in an aggressive — though some say belated — attempt to prevent the eurozone from becoming trapped in long - term economic stagnation.

That's according to MKM Partners» chief economist Mike Darda, who was referring to the Federal Reserve's efforts to unwind its $ 4.5 trillion balance sheet after it bought vast quantities of government bonds and mortgage - backed securities to mitigate the effects of the Great Recession.

Banks «earned their way out of debt» by lending to global speculators who used the yen loans to convert into foreign currency and buy higher - yielding assets abroad — capped by Icelandic government bonds paying 15 %, and pocketing the arbitrage difference.

The Federal Reserve will presumably keep its bond - buying program going a while longer after the disruption to the economy caused by the government shutdown, and is not likely to raise interest rates until at least 2015.

1) Beijing could buy fewer U.S. government bonds and more of other U.S. assets, so that net capital flows from China to the United States would remain unchanged.

You can buy a Swiss government 10 - year bond and get LESS money back at the end of ten years.

Of course, the seller of those other assets would now be forced to deploy the proceeds of the sales elsewhere, so that directly or eventually the proceeds would be used to buy U.S. government bonds.

«I'm similarly impressed by the fragility of our economic system, even though it's been reinforced with so many heavy measures by governments around the globe, ECB bond - buying programs and zero interest rate policies here in the U.S., for instance.»

These paybacks have pushed up the yen's exchange rate by 12 % against the dollar so far during 2010, prompting Bank of Japan governor Masaaki Shirakawa to announce on Tuesday, October 5, that Japan had «no choice» but to «spend 5 trillion yen ($ 60 billion) to buy government bonds, corporate IOUs, real - estate investment trust funds and exchange - traded funds — the latter two a departure from past practice.»

So yen were borrowed to convert into dollars, euros, Icelandic kroner and Chinese renminbi to buy government bonds, private - sector bonds, stocks, currency options and other financial intermediation.

Capital controls have historically been as much about preventing foreigners from buying local government bonds as it has been about preventing destabilizing bouts of flight capital, and living in China, where an aggressive demand for the privileges of reserve currency status coincide with equally aggressive policies that prevent the RMB from achieving reserve currency status (and that transfer ever more of the «benefits» to the US) made clear the huge gap in rhetoric and practice.

Various quantitative - easing options focused on government bonds were shown to governors on Jan. 7 in Frankfurt, including buying only AAA - rated debt or bonds rated at least BBB minus, the euro - area central bank official said.

In a country where the unemployment rate is at a 20 - year low and industrial output is approaching historical highs, fueling inflation concerns, a 10 - year government bond yield of 1.5 % is totally inappropriate and will naturally spur people to buy real estate.

Once it became obvious the world wasn't coming to an untimely end, the next move was to sell out of longer treasuries and buy corporate bonds and preferred stocks, particularly from financial entities that now had a government back - stop behind them.

Current measures haven't had time to work and challenges including Greece's political crisis make buying government bonds difficult, he said.

The institution is also buying asset - backed securities and covered bonds, and government bond - buying would be part of fresh stimulus to be considered at the Governing Council's Jan. 22 meeting.

So if your horizon is 10 years, buy 10 - year maturity government bonds, and so on.