Germany, viewed as a bond market safe haven, saw
its bond market rally in contrast, with the S&P Germany Sovereign Bond Index tightening 8bps from Friday's close.
Not exact matches
LONDON, April 10 - Russia's rouble tumbled on Tuesday and some Russian
bonds plumbed record lows
in the wake of U.S. sanctions, but the broader emerging
markets complex
rallied, encouraged by China's promise to reduce import tariffs.
This, along with the fact that
rallies in the 10 - year futures have also been accompanied by high volume, has Ciana believing that the
bond market could soon
rally.
Also, Ablin added a large portion of the recent
rally involved a rotation from
bonds into stocks as low interest rates forced investors to seek yield
in the stock
market.
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.
U.S. long - term rates would spike, while investors
in Canada would rush to the domestic fixed - income
market, setting off a
bond rally that would push Canadian yields down «substantially,» said Burleton.
That will have massive implications for all capital
markets, as
bonds will bounce, the dollar
rally will stall
in its tracks and equities could get a second wind due to a less aggressive Fed.
The European Central Bank is all but certain to cut back on its
bond - buying stimulus on Thursday, one of the biggest factors supporting the
rally in global stock
markets in recent months.
«Generally, the
bond market seems to be under - reacting to both the sell - off and the
rally,» said Subadra Rajappa, head of U.S. rates strategy at Societe Generale
in New York.
At this point, we would require at least a strong
rally in bonds or a significant improvement
in market breadth, both which have stalled lately.
Junk -
bond ETFs
rallied on Wednesday, as
markets breathed relief that the «fiscal cliff» is no longer a concern and as a result,
bond yields are under 6 percent for the first time ever, and junk ETF share prices hit levels not seen
in years
in some cases, according to an article on ETF Trends.
As
bond yields surged on Friday, high - yielding segments of the equity
market such as utilities and REITs came under the most pressure, which shows that it won't take much of a rise
in yields to derail their
rally.
... I expect that corporate
bonds will lead the next stock
market surge, just like they did
in 2009, setting up the stock
market for an explosive
rally.
Top 5 things that rocked U.S.
markets this week — a surge
in bond yields sparked investor concerns, crude oil prices snap 2 - week winning streak, dollar extends
rally, gold prices struggle, and Bitcoin update
A reduction from $ 60 billion to $ 30 billion per month was scheduled for the start of 2018, but the dovish tone of ECB President Mario Draghi's accompanying comments — emphasizing that the QE program could be extended beyond September 2018, and giving no indication of an end date — came as something of a surprise to
market participants, sparking a
rally in eurozone
bonds and a moderate selloff
in the euro.
Rates subsequently bear steepened as long - end led the weakness, but renewed decline
in risk sentiment managed to create a soft ceiling for
bond yields, and the rates
market rallied into the close.
Germany, the Netherlands, Switzerland and Austria just aren't big enough to absorb it all, so much of that hot money is pouring into the U.S.. That,
in turn, is creating a bubble
in Treasury
bonds and a possibly unsupported stock
market rally.
Given that Treasury yields broke through levels that have been a fairly reliable barrier for several years now, it wouldn't be surprising to see
bonds stage a «relief
rally» here, but both yields and
market action remain unfavorable overall, holding the Strategic Total Return Fund to a roughly 2 - year duration, primarily
in Treasury inflation - protected securities.
Sentiment
in financial
markets has continued to improve over the past three months, with
bond yields
in most major
markets rising and equity
markets rallying further.
The recent oil price
rally has pushed the energy sector upward
in both the equity and
bond markets.
We precipitated a
bond market rally virtually instantly, even though the stimulus package was
in there.
Between the
market low
in February and the July peak, high yield
bonds rallied roughly 15 %, according to Bloomberg data.
The US Fed indicated further moves would be dependent on global factors and oil prices — a key detail signifying that future rate hikes seem likely to develop on a slower scale, causing a European government
bond market rally on Thursday, sending yields lower
in the region.
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.
«The severe erosion
in the municipal
bond market is likely to subside relatively soon and be replaced by a significant
rally,» he concluded.
The recent oil price
rally has pushed the energy sector upward
in both the equity and
bond markets.
But the only
market indicator cited is a
rally in bonds.
Which is a terrifying reminder of the underlying economic reality since then —
in the absence of trillions of monetary (& fiscal) stimulus, and the
bond & equity
market rallies they've induced, quite obviously something more like (or even worse than) Japan's lost decade (or two) would otherwise have been on the cards (& might still be)...
«Rising Oil Prices Support Modest
Rally in Corporate
Bond Market,» Morningstar, 14 May 2018, http://www.morningstar.com/articles/865617/rising-oil-prices-support-modest-
rally-
in-corporat.html
Norway's CPI for April clocked
in at 2 % YOY, and its
bond market rallied as well.
Unfortunately, many people only learn these lessons by panicking and then missing a subsequent stock
market rally while they sit
in an emotional foxhole too terrified to participate
in stock or
bond markets.
There was a chance if the credit
markets rallied that the
bonds might be worth something, but the odds were remote — it would mean no more defaults, and
in late 2008 with a lot of junior debt financial exposure, that wasn't likely.
That's just because the
rally in the stock
markets has left the
bond portion of the portfolio slightly below target.
The
rally in the stock
markets has also left the
bond component below target.
The
markets and the pundits are calling for an upturn
in interest rates and announcing the end of the Great
Bond Rally.
No panic
in investment grade
bonds, and the losses of the stock
market have been minor over that time, leaving aside the fact that the
market rallied for a few more weeks after high yield began to slide.