Sentences with phrase «based on bond yields»

Penalties that are based on bond yields can also cost a small fortune, depending on bond performance.

Not exact matches

On Wednesday afternoon, the benchmark U.S. 10 - year bond was yielding 2.35 per cent, up 15 basis points from before the Fed statement and up sharply from about 1.6 per cent at the beginning of May.
The current deadlock has raised pressure on Greek bonds on Thursday morning, sending the 10 - year bond yields up by 5 basis point.
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.
the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close
The assumed discount rate utilized is based on a broad sample of Moody's high quality corporate bond yields as of the measurement date.
Yields on U.S. 30 - year bonds, which are more sensitive than shorter maturities to the outlook for inflation, have jumped almost 40 basis points since last Friday and a $ 15 billion auction of the tenor on Thursday showed waning appetite for the securities.
-LSB-...] the long - term returns on bonds will certainly be lower than average based on the current yields.
Yields on U.S. government bonds are already some of the highest in the sovereign debt markets and are attractive to non-U.S. buyers on an absolute and relative basis.
In contrast, bond market exposure (in the form of yield curve and spread risk) has played a relatively minor role in driving convertible bond risk and return in the recent past and seems likely to play a minor role in the year ahead, based on our model.
There is no doubt that, based on pure, cold, logical data, stocks are the single best long - term performing asset class for disciplined investors who are not swayed by emotion, focus on earnings and dividends, and never pay too much for a stock, often as measured on a conservative beginning earnings yield relative to the Treasury bond yield basis.
Based on BlackRock's long - term assumptions, some of the better return - to - risk ratios are in high yield bonds, EM dollar - denominated debt and bank loans.
Whatever happens to rates from here it makes sense to reign in your expectations as a bond investor based on today's low starting yields.
One important concept to understand is yield, which is the annual income on a bond, based on its market price; it's sometimes used interchangeably with «interest rates.»
The yield on the current 30 - year bond fell less than one basis point to 3.37 percent.
The 30 - day yield also helps you compare bond funds from different companies on a standard basis.
Yield to maturity is the return a bond earns if held to maturity, based on its price and coupon.
Yet we also see very strong inflows into junk bond funds, based on the belief that these high yields represent value rather than information about default probabilities.
I've noted that the upward spike in bond yields in recent months was based not on information about an economic recovery, but merely reflected a normalization of maturity risk premiums.
-LSB-...] happens to rates from here it makes sense to reign in your expectations as a bond investor based on today's low starting yields.
On 15 October, the yield on 10 - year US Treasury bonds fell almost 37 basis points (Graph 2, left - hand panel), more than the drop on 15 September 2008 when Lehman Brothers filed for bankruptcOn 15 October, the yield on 10 - year US Treasury bonds fell almost 37 basis points (Graph 2, left - hand panel), more than the drop on 15 September 2008 when Lehman Brothers filed for bankruptcon 10 - year US Treasury bonds fell almost 37 basis points (Graph 2, left - hand panel), more than the drop on 15 September 2008 when Lehman Brothers filed for bankruptcon 15 September 2008 when Lehman Brothers filed for bankruptcy.
The yield on the 2 - year bond fell 313 basis points to 21.2 percent at 3:22 p.m. in Athens.
The yield on Portugal's 10 - year bonds climbed 16 basis points to 3.93 percent.
In recent months, the yield on US corporate bonds, especially investment - grade securities, is a little more than 100 basis points compared to the yield on government debt, dropping within striking distance of the lows seen post the 2008 financial crisis.
Higher oil prices would reinforce current market trends based on reflation: rising long - term bond yields and a shift out of perceived safer assets — bond proxies and low - volatility stocks — and into cyclical assets such as EM.
Floating - rate loans have yields and volatility similar to high - yield corporate bonds, with one major difference: As their name indicates, their interest rates «float,» adjusting periodically based on a benchmark rate, typically the London Interbank Offered Rate (LIBOR).
For borrowers, leveraged loans offer two significant advantages over high - yield bonds: They are cheaper, by about 100 basis points on average at the moment.
Yields on 10 - year bonds fell by around 40 basis points, to 5.3 per cent, by early March but are now around 5.9 per cent — a net rise of 25 basis points since the time of the last Statement.
For example, GECC's January 8, 2020 maturing, 5.50 % coupon bond (CUSIP: 36962G4J0) with a 3.443 % yield - to - maturity and an A1 rating by Moody's is, on a standalone basis, actually a Baa1 bond.
The more pronounced movements in longer - term bond yields saw the spread between the yield on 10 - year bonds and the cash rate rise in net terms over recent months to around 65 basis points.
This means the yield that Ford is paying on these bonds is the yield on the 5 year treasury + 238 basis points (2.38 %).
The yield on the benchmark 10 - year Treasuries slumped 2 basis points to 2.97 percent, the super-long 30 - year bond yields also plunged 2 basis points to 3.15 percent and the yield on the short - term 2 - year traded nearly 1 basis point lower at 2.48 percent by 12:35 GMT.
Finally, tax - exempt bonds are offering compelling yields relative to taxable instruments of the same maturity, based on my analysis of the Bloomberg data.
Europe continues to stumble forward based on almost any economic measure and German two year bonds now have a negative yield.
Equities still look cheap on a relative basis due to the precipitous drop in bond yields.
Today, thirty year bond yields are 1.11 % higher (111 basis points) than those on five year bonds.
After having risen 19 basis points the first week of July, the yield on the S&P / BGCantor Current 10 Year U.S. Treasury Bond Index dropped 20 basis points from the July 3rd 2.72 % to its current 2.52 %, offsetting the initial increase.
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.
While not exactly hitting the Federal Reserve's revered 2.0 % annual inflation target, it was apparently close enough to create more jitters in the bond market, with the yield on the U.S. Treasury's benchmark 10 - year note immediately climbing seven basis points to 2.91 %, its highest level in more than four years.
After touching a low of 2.7 per cent in June, yields on 10 - year indexed bonds now stand at around 3.3 per cent, 15 basis points higher than their level in early May.
The dollar's weakness should continue in at least the very short term, as bond yields keep on descending in the wake of QE2 and investors flock to non-dollar-denominated assets, says Marc Chandler, global head of currency strategy at Brown Brothers Harriman, based in New York.
A bullish bias is based largely on Bond yields bottoming out, NOT TOPPING, along with Advance / Decline being back at new all - time highs while various former underperforming laggard sectors like Healthcare, have begun to outperform.
In early August, yields on 10 - year bonds were around 75 basis points above the cash rate, slightly less than the average differential since the mid 1990s (Graph 66).
The spread between 10 - year bond yields and the cash rate is currently around 45 basis points, compared with more than 100 basis points on average over the past decade (see the chapter on «Assessment of Financial Conditions»).
The reasonable long - term predictability of nominal bond returns based on their starting yields.
Since early April, the yield on 10 - year bonds has moved from being around 15 basis points above the cash rate to being around 20 basis points below.
The yield on the benchmark 10 - year Treasuries slipped 1 basis point to 2.95 percent, the super-long 30 - year bond yields also fell 1 basis point to 3.12 percent and the yield on the short - term 2 - year traded 1-1/2 basis points lower at 2.48 percent by 10:45 GMT.
The «nominal yield,» or coupon rate, is based on the bond's face value.
On Wednesday, German ten - year bonds dropped, causing the yield to rise six basis points higher.
The base rate is determined by the yield on the 10 - year Treasury bonds in May.
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