Sentences with phrase «bond rates rising»

This will sound weird, but I am not as much worried about government bond rates rising, as I am with credit spreads rising.

When bond rates rise, which they have this year, these stocks tend to fall in price as fixed - income products, which are safer to begin with, become more attractive.

Also, as bond rates rise, some of the money that migrated over from the bond market in search of higher yields will return to the safety of fixed income.

The numbers prove that when bond rates rise, these high - priced sectors often fall in a hurry.

Not exact matches

LONDON, May 1 (Reuters)- The dollar broke into positive territory for the year and bond yields were creeping higher again on Tuesday, as the recent rise in oil prices fuelled bets that the U.S. Federal Reserve will flag more interest rate hikes this week.

If interest rates rise and push that risk - free rate of return higher, then those dividend stocks and high - yield bonds are vulnerable.

NEW YORK, May 1 - The dollar broke into positive territory for the year and U.S. bond yields inched higher again on Tuesday as the recent rise in oil prices fueled expectations the Federal Reserve could flag more interest rate hikes at its policy meeting this week.

That relationship has played out this year — as interest rates have risen since January, the HYG high yield corporate bond ETF has come under pressure.

But longer term, rising rates will be bad for stocks; therefore, investors may want to evaluate their portfolios and move out of some equities and invest more in bonds, she said.

When rates rise, as they have done, so - called bond proxies such as consumer staples typically fall.

(Bond yields move inversely with bond prices, and rising yields tend to signal expectations of higher growth and inflation ahead and, therefore, higher interest ratBond yields move inversely with bond prices, and rising yields tend to signal expectations of higher growth and inflation ahead and, therefore, higher interest ratbond prices, and rising yields tend to signal expectations of higher growth and inflation ahead and, therefore, higher interest rates.)

Many of the sectors in question did well in 2016, in spite of the rise in bond rates.

So when rates rise, and bond funds start losing money, that's going to be a shock.

Bond yields rose to the highs of the day as Federal Reserve Chair Jerome Powell laid out a case where the Fed could raise rates more than it has forecast.

Since those investors are just looking for the highest returns, and not say buying bonds their financial advisor told them they needed bonds as part of their retirement planning, they are more likely to jump when rates rise.

Bond yields rose after Fed Chair Jerome Powell laid out a case where the Fed could raise interest rates more than it currently forecasts.

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

Protect yourself from a market pullback — and rising interest rates — by investing in short duration bonds.

Earlier this year, countries on Europe's periphery (notably Italy and Spain) faced rising interest rates on newly issued government bonds, which threatened to push them into insolvency.

If this all occurs while rates are rising, which of course means bond prices are moving in the opposite direction, we could surely see a very sloppy bond market over the next year or two.

With valuations sitting near record levels, they're especially vulnerable and likely to lose appeal relative to bonds as interest rates rise.

More from Balancing Priorities: What a rate hike means for your credit card What to do with your bond portfolio as Fed rates rise Credit scores are set to rise

Alternatively, it's best to shorten the average term to maturity of your bond portfolio as interest rates enter into a rising cycle, because the shorter the term, the less their price will be affected.

Beyond the requirements that liquidity and regulators impose on us, we will purchase currency - related securities only if they offer the possibility of unusual gain — either because a particular credit is mispriced, as can occur in periodic junk - bond debacles, or because rates rise to a level that offers the possibility of realizing substantial capital gains on high - grade bonds when rates fall.

So, putting the two together, we want to own short - term high - coupon bonds when rates are rising, and low - coupon long - term bonds when rates are trending down.

With the United States also reducing its quantitative easing - related bond purchases, supply would then slowly rise and potentially push rates to more extreme levels.

Bond yields rose and stocks slumped after an unexpected rise in consumer inflation to its fastest pace in a year, making it more likely the Fed will raise interest rates three or more times this year.

RATES STILL LOW: Even as concerns about rising bond yields and interest rates spook some investors, bulls are quick to mention that rates are rising off extremely low leRATES STILL LOW: Even as concerns about rising bond yields and interest rates spook some investors, bulls are quick to mention that rates are rising off extremely low lerates spook some investors, bulls are quick to mention that rates are rising off extremely low lerates are rising off extremely low levels.

Long - term interest rates could rise abruptly, as bond prices fall.

NEW YORK, Feb 5 - The dollar rose against a basket of currencies on Monday as the U.S. bond market selloff levelled off after the 10 - year yield hit a four - year peak on worries that the Federal Reserve might raise interest rates faster to counter signs of wage pressure.

After a rough summer of market volatility and expectations of rising interest rates, bonds are back.

And not just as a counterweight to more volatile equities — the steady decline in interest rates since the 1980s caused bond prices to rise, giving their holders» RRSPs a nice tailwind.

The «Futures Now» team discusses the rise in bonds as the Fed looks more likely to raise rates in two weeks.

Yet managing a smooth transition out of the extraordinary bond purchases «could prove challenging» as both interest rates and market volatility rise.

Long - term bond rates have risen about one percentage point since then, and that has caused bond values to fall.

Rising inflation and interest rates should benefit cyclical sectors, such as Financials, relative to bond proxies,» Kostin added.

(When rates rise, bond prices fall.

More from Balancing Priorities: What to do with your bond portfolio as Fed rates rise Credit scores are set to rise Don't make these money mistakes when you're just starting out «There is no sense in bearing the risk of an adjustable rate when you can lock in a fixed rate at essentially the same level,» he said.

The simplified explanation for this aberrant investing disaster was a dramatic rise in interest rates during the period: Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in rates during the period: Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in 1981.

Only a year ago, during the height of the rising interest - rate fears tied to Fed tapering, investors were exiting bond funds in droves.

Bond yields have been rising as interest rate expectations have been rising, and the wage number confirms signs of wage inflation.

Funds that own high - quality bonds with shorter durations, such as Fidelity Short - Term Bond, can help reduce your portfolio's sensitivity to rising rates.

In addition, both variable and fixed - rate mortgage rates have risen over the past year as a result of moves by the Bank of Canada and fluctuations in the bond markets.

Already, the bond yield curve, which measures the difference between short - term interest rates and long one, has been rising.

Government bonds could help reduce default risk, but because of the length of maturity required to earn any meaningful yield, they do little to reduce duration risk - i.e. the overall sensitivity of a portfolio to interest rate rises.

«In a bond mutual fund, you're invested in a pool of bonds with no set maturity date, which means more risk if interest rates rise.»

Elsewhere, most better - rated euro zone bond yields rose 2 - 3 bps on the day.

Meanwhile, the spread between riskier «junk» corporate bonds and «risk - free» U.S. Treasurys has dropped since the election even though interest rates generally are rising.

As rates rise, it might be better to hold individual bonds instead of bond mutual funds, said James Shagawat, a certified financial planner with the Baron Financial Group in Fair Lawn, New Jersey.

When rates rise, the price of older, lower - yielding bonds fall.