Sentences with phrase «treasury bond spread»

At the same time, the long June 10 - year Treasury note / Short June 30 - year Treasury Bond spread has closed in favour of the 10 - year note between February 8 and April 17 in 17 of the last 19 years!

Not exact matches

But, what typically happens in this cycle, is interest rates start to accelerate, leading credit spreads — essentially the gap between how much more of a return bonds provide compared with US treasuries — to compress.

One of the best coincident and real - time indicators of bursting bubbles and recessions is the yield spread between US high - yield corporate bonds and the 10 - year US Treasury.

Ten - year Italian bond yields have risen 17 basis points to 4.55 percent, since the news of an uncertain outcome spread on Monday but the Italian treasury is going ahead with a sale of 6.5 billion euros ($ 8.5 billion) of 5 and 10 - year bonds on Wednesday.

Meanwhile, the spread between riskier «junk» corporate bonds and «risk - free» U.S. Treasurys has dropped since the election even though interest rates generally are rising.

The yield on the U.S. 10 year Treasury bond recently hit 9 - month highs and the 2s10s spread widened on news of the Bank of Japan trimming its long - dated bond buying program and questions around China's ongoing purchase of U.S. Treasuries (USTs) with its foreign - exchange reserves.

This and tight spreads — the gap between corporate bond yields and that of comparable - maturity Treasuries — might mitigate any positive impact from the tax package.

A typical measure of credit conditions are «spreads» — the difference between the yield of 10 - year U.S. Treasury bonds and that of riskier bonds, such as high yield.

When spreads are increasing, it is usually a sign of a selloff in risky bonds and buying of Treasuries.

Spreads between yields on US Treasury securities and corporate bonds have widened noticeably.

1: Widening credit spreads: An increase over the past 6 months in either the spread between commercial paper and 3 - month Treasury yields, or between the Dow Corporate Bond Index yield and 10 - year Treasury yields.

That decline in yields chipped away at the spread between 2 - year Treasuries US2YT = RR, which yield 2.282 percent, and longer - term bonds.

Floating - rate * The coupon on a floating - rate corporate bond changes in relationship to a predetermined benchmark, such as the spread above the yield on a six - month Treasury or the price of a commodity.

This is particularly true in the corporate bond market where credit spreads (the gap between treasury and corporate borrowing costs) have remained close to all - time lows.

This additional yield on a riskier credit bond is called the credit spread, and it's measured against a similar duration U.S. Treasury bond.

This is inaccurate, because there are other factors which combine with credit risk to make up the «spread premium» that other types of bonds have over treasuries.

High yield (HY) spreads — the difference between the yield of a high yield bond and a Treasury note of similar duration — are down 2 percentage points from their February peak, as investors buy high yield bonds.

If you are looking at a 10 year corporate bond which is yielding 5 % for example, and at the same time the 10 Year treasury bond is yielding 2 %, then the credit spread is 300 basis points (3 %).

Investors typically evaluate corporate bonds by looking at their yield advantage, or «yield spread,» relative to U.S. Treasuries.

For example, by comparing a group of corporate bonds (like investment grade corporate bonds) vs. treasuries, you get a picture of where the average investment grade bond credit spread currently stands.

The BAA spread refers to the yield on corporate bonds above the rate on comparable maturity Treasury debt, and is a market - based estimate of the amount of fear in the bond market.

The credit spread is the yield the corporate bonds less the yield on comparable maturity Treasury debt.

For example, based on our analysis using J.P. Morgan index data, the EMBIG index's 7.25 percent performance in 2014 is owed to a -0.35 percent spread return combined with a 7.6 percent Treasury return, as U.S. rates dropped significantly (remember that when interest rates fall, bond prices rise, and vice versa).

To investigate, we define the credit spread as the difference in yields between and Moody's seasoned Baa corporate bonds and 10 - year Treasury notes (T - note).

Also funds and ETFs that hold corporate bonds and hedge by selling treasury bond futures may lose value if the spread between corporate bond yields and treasury bond yields widens.

The credit spread is the difference in yields between the 10 - year Treasury note and Moody's AAA seasoned corporate bonds.

When Ghana issued its first Eurobond under the NPP in 2007, the spread (i.e. the difference) between the interest rate on the bond and US treasuries of similar tenor was 3.87 %.

In recent weeks, the spread (or difference) between the yield of the 10 - year Treasury and a high yield bond of comparable maturity actually widened a bit, roughly 0.45 %, restoring some value in the space.

Spreads (the difference between the yield of a high yield bond and a U.S. Treasury) have come in considerably since the winter lows.

In contrast, a bond issued by a smaller company with weaker financial strength typically trades at a higher spread relative to Treasuries.

For example, if the five - year Treasury bond is at 5 % and the 30 - year Treasury bond is at 6 %, the yield spread between the two debt instruments is 1 %.

The spread moved from 5 BP to 5.5 BP, indicating that high - yield bonds underperformed Treasuries during that time period.

For example, a bond issued by a large, financially healthy company typically trades at a relatively low spread in relation to U.S. Treasuries.

Exhibit 2 shows the yield spread of various dividend indices versus the yield - to - maturity of the S&P U.S. Treasury Bond 7 - 10 Year Index since Dec. 17, 2015.

I learned from a dear friend of mine who manages high yield at Dwight Asset Management (one of the largest fixed income management shops that you never heard of), that with high yield bonds, spreads over Treasuries aren't the most relevant measure for riskiness of the bonds.

Let's call it a Treasury Bond Bubble, because other classes of intermediate term debt have significant yield spreads over Treasuries because of the current economic volatility.

2) More yield - seeking — spreads on mortgage bonds over Treasuries are at a 17 - year low, and as I measure it, and all - time low.

Spread curves of high yield bonds tend to invert when the Treasury yield curve is steeply sloped.

The duration matched spread to Treasuries or the OAS (Option Adjusted Spread) for both the S&P U.S. Issued Investment Grade Corporate Bond Index and the S&P U.S. Issued High Yield Corporate Bond Index are tighter by 16 and 33 basis points respectspread to Treasuries or the OAS (Option Adjusted Spread) for both the S&P U.S. Issued Investment Grade Corporate Bond Index and the S&P U.S. Issued High Yield Corporate Bond Index are tighter by 16 and 33 basis points respectSpread) for both the S&P U.S. Issued Investment Grade Corporate Bond Index and the S&P U.S. Issued High Yield Corporate Bond Index are tighter by 16 and 33 basis points respectively.

So in a boom, credit spreads [the difference between the yields of corporate bonds and Treasury bonds] tighten quickly, tighten slowly, and then stop tightening, even though things seem to be going great.

They can either switch to another five - year fixed rate preferred share security (with the rate being set at the then five - year Canada bond yield plus the initial spread) or a five - year floating rate preferred share with the yield set at the then 3 - month Treasury bill rate plus the initial spread.

The first portfolio was spread equally across five asset classes: U.S. stocks, stocks of developed economies overseas such as Europe and Japan, emerging market stocks, inflation - protected U.S. Treasury bonds, and long - term regular U.S. Treasury bonds.

This spread is measured by the difference between 10 - year corporate bond yields and 10 - year U.S. Treasury bond yields (or alternatively, by 6 - month commercial paper minus 6 - month U.S. Treasury bill yields).

This additional yield on a riskier credit bond is called the credit spread, and it's measured against a similar duration U.S. Treasury bond.

The spread between the 10 - year nominal bond and the 10 - year Treasury Inflation Protected bond - the markets estimate of annual inflation over the period - is about 250 basis points, up 50 basis points from a year ago.

But the Fed is not so sure, and officials note that corporate bond spreads have narrowed over U.S. Treasuries, and that although mortgage rates have risen, they are still low.

In order to lure investors away from Treasuries to buy mortgage bonds lenders have to offer a premium (AKA «spread») over what can be earned on the «risk free» Treasury.

When spreads are increasing, it is usually a sign of a selloff in risky bonds and buying of Treasuries.

But last week the benchmark 10 - year U.S. Treasury bond yield jumped to a six month high around 3.75 pct, while the spread between 2 - year and 10 - year bond yields widened to a record 2.75 percentage points.

Typically, strategies include spreads, butterfly spreads, and Treasury bond basis trades.