If
bond yields continue to rise in the near term, such would be a bearish development for world stock markets.
If
the bond yields continue to increase, we will see fixed mortgage rates rise.
The real question is how long will
the bond yields continue their climb?
Even the consumer prices have shown signs of improvement in the recent months,
the bond yields continue to edge lower.
Long - term
bond yields continue to extend their hostile upward trend, while other market internals continue to diverge as well.
Banks plunged as
bond yields continued to fall, which will mean lower interest rates on loans.
The US dollar extended its gains across the board as US
bond yields continued to rise.
U.S. stocks opened with slight gains on Wednesday, as major indexes stabilized following a sharp decline in the previous session but as rising
bond yields continued to be monitored as a possible risk.
Despite that, major stock indices ticked lower in pre-market futures trading as U.S. government
bond yields continued...
Not exact matches
Much of the shift lower in our
yield forecasts derives from the view that the ECB [European Central Bank] will
continue to buy
bonds in its QE [Quantitative Easing] program.
NEW YORK, Jan 18 - U.S. fund investors pulled $ 3.1 billion from high -
yield «junk»
bonds during the latest week, Lipper data showed on Thursday, offering new warning signs about risk appetite despite global markets»
continuing triumph.
Others have noted that if the Fed
continues raising short - term rates while long - term rates remain stalled, it could turn the shape of the
bond yield curve upside down, a typical signal of recession.
April 25 - Dow Jones Industrial Average futures erased losses on Wednesday after Boeing reported strong results and forecast, but concerns about rising U.S.
bond yields and corporate costs
continued to weigh on U.S. stocks.
If at this point we found that using an interest rate of 6.8 % in our calculations did not
yield the exact
bond price, we would have to
continue our trials and test interest rates increasing in 0.01 % increments.
Looking ahead, we may see rising
yields along with a
continued focus from the government on tax reform, and such a move could hurt the relative attractiveness of muni
bonds.
Although the focus on the
yield curve has led to fewer
bond purchases, the Bank of Japan may have little choice but to
continue to inject significant amounts of liquidity into an economy that remains beset by demographic challenges.
Europe's Central Bank (ECB)
continues to buy
bonds, pushing
bond yields lower.
Many
bonds trade at negative
yields because the European Central Bank (ECB) and the Bank of Japan (BOJ)
continue to buy
bonds as part of their management of monetary policy.
Long - term
yields for Treasury
bonds began to rise in early May, following comments from numerous Federal Reserve officials indicating that the Fed's massive
bond - buying program would begin to slow if the economy
continued to improve.
By the end of that month,
yields on the 10 - year Treasury note had climbed by nearly one - half of one percent — yet money
continued to flow in to
bond funds.
«Solid dividend payers like AWK will
continue to command a premium in the market as investors are looking for any type of stable
yield,» said investment instructor and small - cap stock expert Jason
Bond.
Western allies press Trump to maintain nuclear deal with Iran: Reuters US intelligence monitors Iranian cargo shipments into Syria: CNN A trade war is a major risk for China's debt - ridden economy: CNBC Federal judge orders gov» t must accept new DACA immigration applications: WaPo Unification of Koreas still unlikely as leaders prepare to meet: Reuters US Consumer Confidence Index rebounded in April after March decline: CB New home sales in US increased to 4 - month high in March: MarketWatch Richmond Fed Mfg Index turns negative for first time since 2016:
Bond Buyer S&P Case - Shiller Home Price Index surged in Feb, up 6.3 % y - o - y: CNBC Federal Housing Finance Agency: US house prices
continued to rise in Feb: HW Corp
bonds with lowest investment - grade rating look vulnerable: Bloomberg 10 - year Treasury
yield reaches 3.0 % for first time since 2014: CNN Money
As
yields across the world
continue to be pushed lower by highly accommodative monetary policies, international investors are fleeing low (or negative) rates offered by many DM government
bonds.
Meanwhile, investors
continue to struggle to find income, with
bond yields in most countries hitting new lows.
In the meantime, gold
continues to find support from global monetary policy and low to negative government
bond yields.
Moreover, the
yield on industrial
bonds in the Dow Jones
Bond Average
continues to rise, further widening the risk premium on corporate debt.
We may see some more uncertainty ahead of earnings releases and investors will
continue to react to
bonds yield changes.
We also mentioned that the initial spike in
bond yields after President Trump was elected seemed unlikely to
continue this year.
Just because there is a rule stipulating that QE program purchases of sovereign
bonds be in relation to GDP, the ECB has and will
continue to do «whatever it takes» in order to prevent peripheral Eurozone
bond yields from blowing out to near - reality levels.
Will dividend investors
continue to purchase suddenly volatile, high -
yielding strategies when
bonds offer higher rates and less risk?
The
continued downward movement on U.S.
bond yields has also been somewhat unexpected, given that the Fed is setting the stage for higher interest rates later this year.
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.
While spreads between
yields on highly - rated corporate
bonds and government
bonds have remained above their historical averages, this
continues to reflect strong demand for Commonwealth Government
bonds rather than concerns about corporate credit quality.
The
continuing low level of government
bond yields has supported the search for
yield that has been evident over the past couple of years, with the spread between
yields on US government debt and
yields on both corporate and emerging market debt remaining around historical lows over the past three months (Box B).
Bond yields will
continue to drift higher over the course of 2018, we believe, as rate normalization
continues.
Bond yields, both real and nominal, have fallen recently even as stocks
continue...
The pound fell 1 % after the announcement while
yields on United Kingdom government
bonds declined, aided in part by concerns expressed by the MPC that the uncertainty surrounding Brexit will
continue to weigh on domestic activity, which has slowed even as global growth has accelerated.
Europe
continues to stumble forward based on almost any economic measure and German two year
bonds now have a negative
yield.
The market craziness
continues, with stocks down, commodities crashing, and
bond yields rising.
Instead, we would
continue to emphasize U.S. high
yield bonds and longer - dated municipals, as we believe both still offer some relative value within fixed income.
Sees money
continuing to flow into equities due to their
yields being higher than
bonds in general..
This extends muni
bonds» multi-month-long streak in net inflows — already one of the longest in U.S. history — proving that in a world of low government
bond yields and macroeconomic uncertainty, munis
continue to be sought as a «safe haven» for their relatively low volatility, modest gains and, of course, tax - free income.
Bond markets are certainly displaying a lot of enthusiasm at the moment — and it doesn't matter which
bonds one looks at, as the famous «hunt for
yield»
continues to obliterate interest returns across the board like a steamroller.
High
yield bonds that are part of the Markit iBoxx USD Liquid High Yield Index provide an average yield north of five per cent at the moment, according to Bloomberg data, and may continue to perform well in a cycle of improved economic gr
yield bonds that are part of the Markit iBoxx USD Liquid High
Yield Index provide an average yield north of five per cent at the moment, according to Bloomberg data, and may continue to perform well in a cycle of improved economic gr
Yield Index provide an average
yield north of five per cent at the moment, according to Bloomberg data, and may continue to perform well in a cycle of improved economic gr
yield north of five per cent at the moment, according to Bloomberg data, and may
continue to perform well in a cycle of improved economic growth.
(However, HYG and junk
bond funds are
continuing to rally as the hunt for
yield continues)
U.S.
bonds are at the lowest
yield in more than a year and oil
continues to tumble.
The dollar's weakness should
continue in at least the very short term, as
bond yields keep on descending in the wake of QE2 and investors flock to non-dollar-denominated assets, says Marc Chandler, global head of currency strategy at Brown Brothers Harriman, based in New York.
Longer - term inflation expectations of investors have been similarly subdued; the difference between 10 - year
bond yields and indexed
bonds continues to fluctuate within the 2 — 2 1/2 per cent range it has remained in since mid last year.
Still, the
continued benign monetary environment and low
bond yields should mitigate the size of any correction, and the systematic impact will likely be limited.
The level of
bond yields in markets globally
continues to be low by historical standards.