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.
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.
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.
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.
The current deadlock has raised pressure on Greek
bonds on Thursday morning, sending the 10 - year
bond yields up by 5
basis point.
Poland's 10 - year government
bond yield rose 7
basis points to 3.14 percent, its highest level in four weeks, rising more than U.S. and German
yields which it often tracks.
The
yield gap between U.S. 5 - year notes and 30 - year
bonds narrowed to 27.20
basis points, the tightest spread in more than six years.
But its strong
bond base positions it well if
bond yields rebound.
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.
Italian 10 - year
bond yields fell 2.5
basis points (bps) to 1.754 percent while other euro zone
yields were pushed higher by a sell - off in U.S. Treasuries and data suggesting the euro zone economy was not as weak as expected.
Bonds due in 2018 and won by BofA were «aggressively» priced with a 1.64 percent
yield that narrowed Illinois» spread over Municipal Market Data's benchmark triple - A
yield curve to 70
basis points from 100
basis points ahead of the sale, Greg Saulnier, a MMD analyst, said.
BofA won
bonds due in 2029 with a
yield of 3.78 percent, which slightly increased the spread over the scale to 165
basis points from 163
basis points, according to MMD, a unit of Thomson Reuters.
The benchmark 10 - year Treasury note
yield TMUBMUSD10Y, -0.75 % fell 2
basis points to 2.814 %, while the 30 - year
bond yield TMUBMUSD30Y, -0.77 % slipped 3.3
basis points to 2.998 %, its third straight decline.
Rates for home loans eased up slightly as investors bought more
bonds, sending
yields down a few
basis points.
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.
The 10 - year German government
bond yield TMBMKDE - 10Y, -8.48 % fell 1.4
basis points to 0.509 %, according to Tradeweb data.
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.
Appetite for riskier assets such as stocks and high -
yield bonds has been suppressed by a number of factors that have come up around the same time, but the headwinds may be transitory, according to the New York -
based investment bank.
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.
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Bond Index Fund («XSB»), iShares DEX Real Return
Bond Index Fund («XRB»), iShares DEX Long Term
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The apparent one - to - one relationship between Treasury
yields and equity
yields during that span (which is the entire
basis for the «Fed Model») is anything but a «fair value» relationship between stocks and
bonds.
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.»
China's one - year sovereign
bond yield has climbed 14
basis points since the devaluation, while the cost to insure the nation's debt against default jumped to a two - year high.
The
yield on the current 30 - year
bond fell less than one
basis point to 3.37 percent.
The spread between Australian and US
bond yields has contracted from nearly 450
basis points at the beginning of the 1990s to an average of about 25
basis points more recently.
The 30 - day
yield also helps you compare
bond funds from different companies on a standard
basis.
But this week the 10 - year Treasury lost roughly 1.4 points, which translated into a 15
basis point jump in its
yield to 2.84 % The long
bond closed over 3 %.
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.
The average market impact cost was 29
basis points (39
basis points) per $ 1 million traded for investment - grade (high -
yield) corporate
bonds.
The fund adjusts its allocations daily
based upon equity and
bond market volatility, correlation between the
bond and equity indexes, and the
yield - to - maturity of the
bond index.
The BofA Merrill Lynch high -
yield index is trading at roughly 600
basis points versus government
bonds, but if energy, metals and mining is excluded, it's about 80
basis points less in terms of spread.
Further out in the credit quality spectrum, U.S. -
based high -
yield «junk»
bond funds
The 30 - year
bond yield TMUBMUSD30Y, -0.86 % added 3.3
basis points to 3.138 %, the highest since March 9.
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 bankruptcy.
China's benchmark 10 - year government
bond yield traded just shy of 4 percent in early December, up almost 100
basis points over the course of 2017.
The
yield on the 2 - year
bond fell 313
basis points to 21.2 percent at 3:22 p.m. in Athens.
Toronto - Dominion Bank has lifted its posted rate for five - year fixed mortgages by 45
basis points to 5.59 percent as government
bond yields touched their highest levels since 2011 this week.
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).
In Europe, the
yield for the 10 - year German
bond TMBMKDE - 10Y, +1.25 % also known as bunds, fell sharply by 5.2
basis points to 0.527 %, according to Tradeweb data.