Lower yields increases borrowing and lowers debt servicing costs, pushing up consumption.
Not exact matches
In the short - term, however, this
increased leverage may actually be bullish for junk bonds, corporate bonds, emerging market debt and mortgage - backed securities as it brings higher prices and
lower yields, he said.
Because the central bank's purchases represent
increased demand, it tends to push up government bond prices, thus
lowering yields.
Trump's plans to
increase fiscal spending has boosted bond
yields — a change that would support higher revenue for banks currently languishing in a
low - interest rate environment.
Typically, a higher - rate environment will
increase spreads for banks / insurers, but you're absolutely right that the 10 - year
yield could stay flat, especially when the
yields for government bonds of other countries are so
low.
Western allies press Trump to maintain nuclear deal with Iran: Reuters US intelligence monitors Iranian cargo shipments into Syria: CNN A trade war is a major risk for China's debt - ridden economy: CNBC Federal judge orders gov» t must accept new DACA immigration applications: WaPo Unification of Koreas still unlikely as leaders prepare to meet: Reuters US Consumer Confidence Index rebounded in April after March decline: CB New home sales in US
increased to 4 - month high in March: MarketWatch Richmond Fed Mfg Index turns negative for first time since 2016: Bond Buyer S&P Case - Shiller Home Price Index surged in Feb, up 6.3 % y - o - y: CNBC Federal Housing Finance Agency: US house prices continued to rise in Feb: HW Corp bonds with
lowest investment - grade rating look vulnerable: Bloomberg 10 - year Treasury
yield reaches 3.0 % for first time since 2014: CNN Money
The price of the 30 - year Treasury bond
increased 15/32,
lowering its
yield to 3.123 %
Credit Risk: Investors that are chasing
yield in
lower qualiity bonds are doing so by
increasing their credit or default risk.
The 10 - year
yield could
increase by 100 % to 4 %, but that's still
low.
What this means in practice is that we have kept maturities of our investments very short, particularly for
low - risk issuers such as governments and agencies, while we seek out opportunities to
increase portfolio
yield with what we think is well - priced corporate debt.
Yet with
yields on safe investments so
low, and longevity continuing to
increase, the risk is still material, according to a new C.D. Howe Institute report.
U.S. government bond
yields and the dollar rose, while U.S. stocks fell on Sept. 20 after the Federal Reserve signalled it still expects to
increase interest rates one more time by the end of the year despite a recent bout of
low inflation.
This is evident in a number of developments, including:
increased demand for higher - risk assets; the
increase in «carry trades» — a form of gearing where funds are borrowed short - term at
low interest rates and invested in higher -
yielding assets, often in other countries; growth in alternative investment vehicles such as hedge funds; and growth in alternative investment strategies such as selling embedded options (see Box A).
Rate and
yield increases will likely remain within the context of still generally
low -
yield levels.
Privately held debt of the U.S. government as a share of GDP
increased this cycle to 74 % from 39 % in 2008, prompting concern that the U.S. is doomed to a debt trap in which high debt and
low yields result in more debt.
In contrast, Treasury
yield volatility has recently headed
lower — even as five - year Treasury
yields have risen along with expectations of a March rate
increase.
• Excellent on certain dividend categories, including 43 straight years of
increases,
low payout ratio, and highest
yield ever available • Declining number of shares over the past 10 years makes each remaining share worth a higher percentage of the company.
This, in turn,
increases the demand for longer - term securities, boosting their prices and further
lowering their
yields.
Although default risk is typically
low, there are high -
yield municipal bond funds that
increase credit risk.
PNR currently
yields 1.30 % with a
low payout ratio of 25.4 % ensuring future dividend
increases based on current cash flow.
Currently, BBB - rated bonds are equal to 45 % of the entire outstanding high -
yield market, which has
increased from 30 % a decade ago.3 Since BBB is the
lowest investment - grade bond rating, the risk is that many poor credits will fall, like angels, from the investment - grade into the high -
yield universe.
NOTE: High -
yield bonds are subject to additional risks, such as
increased risk of default and greater volatility, because of the
lower credit quality of the issues.
Hi Daze, With
lower prices and recent dividend
increases, the utility sector is sporting some nice dividend
yields.
Evidence from other countries is compelling that better organization and management can
increase the productivity of public health - care delivery in Canada,
yielding better outcomes at
lower cost.
The reduction reflects improvements in economic prospects in emerging markets, and
increased investor interest in higher -
yielding debt, given the relatively
low yields available in industrial countries.
However, bond
yields have been mostly driven by US developments, where bond
yields appear unusually
low against a background of strong growth, rising inflation and
increasing short - term interest rates.
«Strong equity gains domestically and a weaker Canadian dollar helped boost foreign holdings, but
lower long - term bond
yields will have
increased most plan liabilities,» said Scott MacDonald, managing director, Pensions for RBC Investor & Treasury Services.
For example, the utility sector, which appeals to investors desiring higher current
yield and
lower economic sensitivity, was the only sector that
increased in value during the quarter.
The increasingly strident rhetoric from both sides and absence of consensus among major powers on how to respond to North Korea's actions
increased uncertainty, and by early September benchmark Treasury
yields had fallen to their
lowest level so far this year.
Still reeling from the effects of Britain's decision to leave the European Union, global investors showed
increased demand for the safe haven of U.S. Treasuries, resulting in the 10 - year U.S. Treasury
yield hitting a record
low on July 6th.
Moreover, by keeping short - run interest rates near zero for more than seven years, paying interest on excess reserves (IOER) above the effective fed funds rate, and convincing markets that rates would stay
low for a long time (forward guidance), the Fed has
increased the reach for
yield and appears more interested in priming Wall Street than in letting markets set interest rates and allocate credit.
Yields available on high - quality securities continue to remain
low but are somewhat offset by
increases in average investment balances.
He will highlight how organic farming practices can
increase yield while keeping emissions
low - a win - win scenario for people and planet.
These expenses, combined with
lower yields and
increased labor costs, are often not sufficiently offset by the price premiums paid for organic coffee, which are typically around 20 to 25 percent.
All prices for chile in 1973 were slightly higher than 1972, due to an
increased demand and
lower yields.
Premium Ingredients claims that the Premilac XLK - 10007 can
lower the production cost of Feta type cheese by minimizing syneresis, replacing milk fat with vegetable fat and enabling
increases in cheese
yield.
Open Senate was developed as part of an overall Information Technology modernization project in the Senate, initiated with the election of a new Senate Majority in January 2009, which has
yielded in excess of $ 500,000 in annual net savings to date; savings have derived primarily from
increasing the Senate's ability to create and maintain technology in - house, including using a combination of free open - source software and
low - cost Software - As - A Service (SaaS) solutions whenever possible, thus enabling the Senate to cancel unnecessary maintenance and service contracts, and decommission expensive obsolete computer systems.
Op - Ed by Howie Hawkins: «A more progressive tax structure would
yield increased revenues to fund progressive priorities while providing tax relief to
low and middle income New Yorkers.
Due to the
lower costs of production (
lower pesticide use) and higher
yields resulting from the planting of Bt cotton, farmers have experienced
increased incomes.
But if the decrease in aerosols is driving the brightening trend and the
yield increase, there's a limit to how
low those emissions can get.
Though the environments included in the study could have supported plant populations greater than 32,000 plants per acre, the study concluded that maintaining a
lower plant population while supplying the other inputs at the advanced level neither
increased nor decreased
yield.
But
increases in weather variability and extreme weather events could
lower crop
yields.
Rising temperatures on earth — and the
increasing frequency of heat waves in particular — cause
lower agricultural
yields.
In February, at the annual meeting of the American Association for the Advancement of Science in St. Louis, he captivated the crowd with early results from a project in Africa that uses
low - cost fertilizers and improved farming techniques to
increase crop
yields several times over.
«A
low -
yielding reaction is problematic because this means that less material is made, thus
increasing overall production costs.
«In general, sweetpotato
yield decreased with the
increase in SWT, with the highest
yield attained at the
lowest SWT tested,» the authors explained.
What this means, says Paarlberg, is that «the
increased productivity of modern agriculture is not from higher
yields but
lower inputs per bushel».
Lower yields of crops or damage to crops, water stress, food insecurity, malnutrition, poor health and
increased risk of population migration are forecast to become more common globally.
Current research shows that
low water intakes
yield an
increase in fat deposits.
Exercise and weight loss
yield particularly good results by
increasing insulin sensitivity and
lowering body fat.