Sentences with phrase «bond market fall»

As prices in the bond market fall quickly, so too will the price of a bond ETF, reflecting the changing value of the securities it holds.

For example, the U.S. dollar typically rallies in response to an interest rate increase, while the bond market falls in reaction to rate hikes.

When the U.S. bond market falls by 1 %, the world bond group falls by 1.34 % while Payden rises by 0.28 %.

Think of it this way: the Fed might want to continue the short - term financing indefinitely, but there have been times in the past where the Fed has felt forced to abandon a plan because of global macroeconomic events (think 1986 - 7, when the dollar fell, then the bond market fell, then the stock market fell...).

Not exact matches

MSCI's emerging market share index fell 0.4 percent with Russian dollar - denominated stocks chalking up some of the biggest losses and currencies and bonds staying firmly under pressure too.

When bond yields rise, the market price to purchase or sell those bonds falls.

Since the bond market's «flash crash» back in October — when US 10 - year Treasury yields fell 34 basis points, or 0.34 % in one morning — concerns regarding liquidity and how resilient the bond market might be to shocks have lingered around the market.

Amid the worst market volatility since the Great Recession, it's fallen in value along with stocks and bonds.

In the bond market, the 10 - year US Treasury yield fell less than 1 basis point, to 2.79 %, near the key 3 % level that traders are closely watching.

Specifically, there are concerns about what might happen should the tide turn in the bond markets when 30 years of falling interest rates reverses at a time when the Federal Reserve is preparing to tighten monetary policy by forcing rates higher.

Their declining currencies against the dollar (8 - 9 percent over the past 12 months), falling stock market values since the beginning of the year and high (India) and rising (Brazil) bond yields are reflecting their funding difficulties.

Last fall, the B.C. government also became the first foreign government to issue bonds into the Chinese RMB market, issuing a one - year - term bond that raised about $ 428 million Canadian.

It's the total earnings - per - share the market generates as a percent of the market's total value — a measure similar to the yield on bonds, where the yield rises when bond prices fall, and vice versa.

As interest rates rise, the prices of existing bonds fall in order to make the yield of their fixed coupons competitive in the market.

Timmer: Yeah, so last August which was a key inflection point for the market — because at that point, nobody was expecting tax cuts anymore and the 10 - year Treasury had fallen to 2 %, and the bond market which of course is always pricing in the potential future, was pricing in only one more rate hike over the subsequent two years.

With markets focusing on the weakness of demand, stocks fell in both Asia and Europe, while «safe - haven» investments such as U.S. Treasury bonds and gold surged again.

Meanwhile government bond yields, a reliable barometer of market fear, are falling to record low levels as investors engage in a panicked hunt for risk - free assets.

Back in October, the big story was not just that equity markets were selling off while bonds were rallying, but that inflation expectations had completely fallen off a cliff.

When the market falls and volatility rises, investors should hide in bonds and gold, according to CNBC analysis.

The message in Wednesday's release of the minutes from the Fed's June policy meeting reiterated a dovish notice to the market, while spelling out the endgame this fall for its massive bond - buying program.

Bond prices falling along with a falling dollar reflect an exit by foreign investors from US bonds that were attractive when risk off from non US markets was the theme and the dollar was strong.

The bond market knows how to read the financial statements, and prices of RadioShack debt have been falling accordingly.

Bond traders also keep an eye on the VIX, a measure of stock - market volatility, since it has historically been highly correlated to the performance of stocks: rising when stocks sell off and falling when stocks rally.

But that relationship has been tested over the life of this bond bull market that saw double digit interest rates fall over the past 30 + years, boosting the performance of long - term bonds.

Looking forward, even if you assume bond yields settle down, probably somewhere in last fall's range of 2.2 % to 2.6 % for the 10 - year Treasury note, this moderate year - to - date rise is still likely to inflict significant damage on parts of the market.

But once everything was in place, the markets tried to lure him out of his process as interest rates fell and the value of his bonds went up.

TLT, the ETF representing one of the most sensitive parts of the bond market, has fallen 16 % from its highs in July (It remains up 1.6 % on the year).

The 1950s witnessed a strong bull market in stocks, but when the S&P 500 fell double digits in 1957 bonds held up really well.

Equity markets fell as investors shifted to the relative safety of bonds issued by the major countries — even though S&P had announced a downgrade of the US sovereign credit rating.

With the stock market in a free - fall, fixed - income investors anxious about coming interest rate hikes by the Federal Reserve might feel a little better about boring bonds and their measly coupons.

Bond market geeks refer to this as a «flattening of the yield curve,» meaning that shorter - term interest rates rose while longer - term interest rates fell.

Consider these risks before investing: The value of securities in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions, changing market perceptions, changes in government intervention in the financial markets, and factors related to a specific issuer, industry, or sector and, in the case of bonds, perceptions about the risk of default and expectations about changes in monetary policy or interest rates.

In the end, the insiders sold out at the top of the market, leaving pension - fund investors with stocks whose prices were falling and bonds that were losing their prospects of being paid off.

Bond market inflation expectations have also fallen lately back to December lows.

I have used a fall in exports to show how constrained Beijing's policy choices are, but I could just have easily done the same using as an example any change in the currency regime, the reform of the hukou system, the de-industrialization of the bankrupt northeast provinces, the development of the OBOR and Silk Road projects, changes in interest rates or minimum reserves, protecting the stock market from crashing, the provincial bond swaps, changes in the tax regime, improving energy and environmental policies, and so on.

In a diversified portfolio you use your bonds to buy stocks (or for spending purposes if taking distributions from your portfolio) when the stock market falls so you aren't forced to sell your stocks at a low point in the cycle and lock in losses.

For one, the share of securities whose 12 - month trading volume equals at least half of the number of securities outstanding has fallen from 20 % to less than 5 % in the US corporate bond market since 2007 (CGFS (2014)-RRB-.

Stock and bond markets tend to move in cycles, with periods of rising prices and periods of falling prices.

It has been easy for stock investors to love bonds as they have generated handsome returns while providing protection when the stock market falls.

While equities fall, the bond market is slowly waking up from hibernation.

At the Shadow Open Market Committee fall meeting on Sept. 15, economist Peter Ireland of Boston College argued that the effect of reducing the balance sheet is ultimately equivalent to an open - market sale of bonds by the Fed of the kind it would undertake in order to push up the fed funds interestMarket Committee fall meeting on Sept. 15, economist Peter Ireland of Boston College argued that the effect of reducing the balance sheet is ultimately equivalent to an open - market sale of bonds by the Fed of the kind it would undertake in order to push up the fed funds interestmarket sale of bonds by the Fed of the kind it would undertake in order to push up the fed funds interest rate.

The current standard for poor bond market performance is 1994 when the Barclays Aggregate Bond Index fell 2.92 percent — its worst return in the past 34 yebond market performance is 1994 when the Barclays Aggregate Bond Index fell 2.92 percent — its worst return in the past 34 yeBond Index fell 2.92 percent — its worst return in the past 34 years.

The market's continuing refusal to countenance the long - term reality described above has proven to be a recurring source of profits for those who are willing to buck the crowd and embrace the trend in falling long - term bond yields of the highest quality borrowers.

Though the underlying reason for that Treasury price strength was concern about economic weakness and credit defaults, falling bond yields do allow us to take a more constructive stance once market internals show evidence of improvement.

Since rising interest rates means the bond's fixed rate is not competitive against newly issued bonds at higher market rates, then it stands to reason that longer - term bonds (those with longer to pay at the lower rate) are going to see their prices fall further than short - term bonds.

New Zealand bonds close higher after U.S. 10 - year Note yield falls below 3 pct mark; market awaits Q1 employment report

With the stock market suddenly much more volatile and bond prices falling, investors looking for a less risky place to stash their cash may want to consider money market mutual funds.

This week the ECB has taken markets somewhat by surprise with the scale of its quantitative easing (QE) program and this should help to consolidate recent bond yield and currency falls.

* Canada vs USA * D. Rosenberg in Barron's (Feb 27» 17) * Financial Markets History (CFA) * Global liquidity + China * Staying rational the day after Trump election * Consequences of the U.S. elections * China's Transition: Fast and Slow * The Fall in Interest Rates * Cool Streets of North America * Emerging bonds * About Millenials * Looking for safe income?

But I am concerned that late - cycle entrants into risk assets like stocks and high - yield bonds are taking a leap of faith at a time when there is less room for markets to move up and growing risks of them falling back.