Sentences with phrase «bond yields»

"bond yields" refer to the amount of money you earn from owning a bond. It signifies the interest or return an investor receives when they lend money to a government or company by purchasing their bonds. A higher bond yield means you get more money back, while a lower bond yield means you earn less. Full definition
Increase in bond yields in the current quarter of the financial year 2017 - 18 resulted in losses in the company's long - term maturity investments, it said in the filings.
Both high yield indices demonstrated a positive correlation with rate changes, meaning that high yield bonds had positive returns when government bond yields rose.
As bond yields rise higher, bonds become more attractive relative to stocks.
Market risk premium describes the relationship between returns from an equity market portfolio and treasury bond yields.
Of course the future is not the past and I've been worried about the likelihood of low bond yields in the future.
Yield to maturity is considered a long term bond yield expressed as an annual rate.
The level of bond yields in markets globally continues to be low by historical standards.
Prices of fixed rate bonds of course fall as bond yields rise.
With corporate bond yields falling, the private sector yield curve has inverted.
I agree with your conclusion that higher bond yields in the coming year would indeed be a positive for stocks.
Investors in REITs have enjoyed immense gains as the 10 - year Canadian bond yield fell by more than half, effectively boosting the value of their holdings.
With bond yields so low it's become extremely tough to find fixed income investments that pay a steady distribution, but investors still have some options.
They just tend to play with the posted rate time to time when bond yield moves in any direction.
Rising short rates will add to the upward push on bond yields.
The yen was the second weakest currency of the week, even though global bond yields fell, which should have provided support for the yen.
The implication of this for bond yields remains troublesome to say the least.
Besides, even if bond yields do rise, as they will eventually, you'll still be relying mostly on the stocks in your portfolio for long - term growth.
First, the long - term bond yield curve inverted, meaning markets entered a period where long - term debt had a lower yield than short - term debt.
As a striking example, the relentless global march toward lower bond yields over the last 40 years is rather unlikely to persist in the decades to come.
And as usual, the yen took directional cues from bond yields.
With bond yields increasing this week, bond prices fell.
This means that Governments around the world will be competing with their own Central Banks to sell debt, and the result could be much higher bond yields going forward.
Note, also, that insured AAA bonds yield more than AA bonds that are not insured: A higher yield means that the bond is perceived as more risky.
I still think there's scope for a significant reduction in that discount — after all, junk bond yields just hit 5 %!
It doesn't mean that we won't experience inflation or higher bond yields at times, but we're likely to live in a low - yield environment for a very long while.
By those criteria, 10 - to 30 - year municipal bonds yielding 4.5 % to 6 % before taxes would appear to be the safer buy.
High inflation and a high interest rate pushes bond yields up and brings down the bond price in the market.
That favorable bond market can't be repeated in the next 15 years because bond yields are now so low.
Canadian bond yield saw a sharp jump in last few weeks.
If bond yield moves high, then interest sensitive stocks go down while financial stocks go up, and vice versa.
Low sovereign bond yields have long helped the government finance its debt, thus, higher yields would undermine the sustainability of its fiscal position, analysts said.
For a long period of time bond yields remained historically low and finally they are feeling the pinch of such a large amount of stale investments.
It would be extraordinary for stocks to move ahead at 9 % while low investment grade long bonds yield 3 % less.
Moreover, bond yields didn't remain on their upward trajectory making it particularly difficult for financials to perform in this kind of environment.
At current bond yields, investors will be lucky to get a 2 % return in bonds.
If bond yields continue to rise in the near term, such would be a bearish development for world stock markets.
But moods can shift quickly, especially if bond yields start rising and the stock market sells off for a prolonged period of time.
Meanwhile, the historical data really doesn't provide much in the way of examples for times when both stock valuations were high while bond yields were simultaneously low.
It seems doubtful that there is a close relationship between bond yields and dividend returns on common stocks.
In an environment where bond yields are climbing, you typically see value beat growth.
I remember the early 1980s, when 10 - year government bonds yielded more than 16 %.
Bull markets rarely end when the earnings yield on stocks — now around 6 % — is higher than benchmark bond yields.
Since bonds yield only 5 % or so, paying a 2 % management fee on a bond fund can eat up nearly half your profits.
But with rock - bottom interest rates keeping bond yields painfully low, they may need to consider fixed - income alternatives to balance their portfolio, he said.
With the exception of the very front end of the yield curve, Canadian government bond yields declined, as did spreads on investment grade corporate bonds.
Consequently, European stocks and bonds rose straight away, while German bond yields reached a record low.
So when bond yields drop, typically, conventional mortgage rates fall as well (see historical graph below).
When the 10 - year bond yield jumps, expect mortgage rates to do the same.
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