The 10 - year
Treasury yield gained 15 bps, while the 30 - year Treasury yield moved up 10 bps to 2.77 %.
Not exact matches
On Tuesday, the
yield on the 10 - year
Treasury note topped 3 percent, the first time it's done this in more than four years, and extended
gains on Wednesday.
The jump in the 10 - year
Treasury yield signals
gains for big banks and technology stocks, according to historical analysis using Kensho.
Indeed, the 10 - year
Treasury yield hit a four - year high on Friday after the latest monthly U.S. jobs report showed solid wage
gains, effectively confirming an expected rate increase at the Federal Reserves next meeting, in March.
Treasury yields rose on Friday after closely watched jobs report showed strong jobs
gains but a muted wages number
Treasury prices pare their
gains by the end of Wednesday, pushing
yields lower, after rising political tensions lures haven bids but later offset by signs that inflation is running higher
However, trade tension between the United States and China, and a rise in U.S.
Treasury yields limited
gains last month.
Since 1953, whenever the 10 - year
Treasury yield was higher than the 500's
yield by less than 100 bps, the S&P 500
gained an average 12 percent in price during the subsequent 12 months, and recorded positive results nearly 90 percent of the time.
However, with both the 10 - year
Treasury yield and the average dividend
yield for a company on the S&P 500 hovering around 2.35 %, that doesn't leave much in the way of real
gains if inflation is running at 2 % per annum.
US
Treasury yields are stable, holding on near their recent highs, but as sentiment improved the USD sold off against most of its peers with only
gaining some ground against the safe - haven Yen.
Taking this a step further, the chart above shows that out of the most recent 23 periods of higher rates (based on the 10 - year
Treasury yield), stocks have
gained ground 19 of those times.
If our stock holdings lag the major indices (whether by
gaining less or declining more), we would expect to achieve performance below
Treasury bill
yields.
Very quickly those
gains reversed and as the trading day began to unfold, we saw the 10 - year
Treasury note
yield rise above 2 %, approximately 20 basis points wider than where it was trading just a few days ago.1
Elsewhere, gold prices are down;
Treasury yields are generally flat; and oil is showing further
gains on rising tensions with Iraq and Iran in early dealings.
US equities rose and the 10 - year
Treasury yield was at a four - year high at the open following
gains in the previous session but this situation is unstable and something must give, according to one analyst.
The 10 - year US
Treasury yield hit the key psychological 3 % earlier this week and now threatens to extend its
gains, placing risk assets in jeopardy as investors weigh the potential consequences.
This places the U.S. in the difficult position of having to finance an enormous volume of capital needs from foreigners, particularly for
Treasury debt, yet without being able to offer competitive
yields or strong prospects for additional capital
gains.
«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.
Treasury yields maintained
gains on Friday after the jobs report.
If you are also looking for price appreciation, Stovall also offers up this tidbit: «With the S&P 500 now
yielding 2.0 % versus 2.2 % for the 10 - year
Treasury, history reminds us that since 1953 whenever the
yield on the S&P 500 was within one percentage point of the 10 - year
yield, the «500»
gained an average of 11 % in price in the subsequent 12 months and was higher about 80 % of the time.»
(Some global
treasury markets have posted double - digit
gains in 2016, even with
yields near or below zero.
The fund invests in longer term bonds, which
gained the most after
Treasury yields saw a significant decline this week.
But I am very pleased with the income potential — a 2.2 % return compares favorably to current 10 year
treasury yields of about 2.7 %, considering that
treasuries have no real capital
gain potential, which could be significant over a 10 year period in the index stock funds.
Credit - sensitive categories — such as investment - grade corporate and high -
yield bonds — were aided by the backdrop of faster growth and rising earnings, and long - term U.S.
Treasuries posted
gains amid continued low inflation.
In the 2008 financial crisis, for instance, some high -
yield and strategic bond funds lost 30 % or more, while higher - quality bonds, like short - term U.S.
Treasury bonds, had
gains.
If the next next step in your analysis is to then compare those earnings
gains and valuation to
Treasury yields, you are simply counting the impact of low rates two times.
Finally, the
yield on the benchmark 10 - year U.S.
Treasury note fell 5 bps to 2.78 %, Comex gold
gained 0.6 % to $ 1,336.10 / oz.
The S&P 500
gained almost triple its historic average last year, and 10 - year
Treasury note
yields hit a three - year high above 2.7 %.