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 bankruptc
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 bankruptc
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 bankruptc
on 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.