Not exact matches
We believe that the Fed's continuing (and increasingly glaring) inability to normalize
interest rates validates our long standing thesis that monetary extremism can not be unwound without
triggering a slew of unacceptably painful consequences for the holders of risk assets and
bonds.
That
triggers inflation concerns, which make
bonds unpopular, pushing their prices down and
interest rates up.
For one, a winding down of the Fed's
bond buying program means
interest rates could go up, which may
trigger losses for investors holding Treasury
bonds.
Interest rates for longer - maturity government
bonds are finally rising,
triggering concern that higher rates could derail the U.S. expansion.
(at 129) He elaborates on the objectives of the OMT programme as monetary policy measures, which
trigger the transmission mechanism and have an impact on
interest rates on government
bonds of specific countries, and states that all these objectives were, with regard to the deterioration of the sovereign debt market for several states in summer 2012 legitimate.
- Capitalization - rate declines can be
triggered by strengthening local market conditions, which improve investor risk perceptions and appreciation expectations, as well as by decreases in
interest rates and returns in alternative investment vehicles, such as stocks and
bonds.