If our economic recovery is still far from now, then it would put more burden on our fiscal deficit, which would result in
bond yields going up & bond prices going down.
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.
The higher
bond yields go, the more pension funds will buy as they look to lock in long - term income streams to meet their liabilities.
It's not just that U.S.
bond yields go up, it's the differential.
At its centre is the prospect that
bond yields go signi...
At its centre is the prospect that
bond yields go significantly higher than 4 per cent.
The importance of the 10 - year Treasury
bond yield goes beyond the return on the instrument as it is used as a proxy for many other important financial matters, such as mortgages and investor confidence.
The moment incremental financing seems less likely or more expensive, companies that will need financing get re-evaluated by the market — stock prices move down,
bond yields go up.
Historically, there tends to be an inverse relationship between bond yields and stock prices — when
bond yields go down, stock prices go up.
Last Friday, Canadian five years
bond yield went just below 2 % mark.
As far as your mortgage rate is concerned —
bond yields went up but the rates are bit slow to respond.
When
bond yields go down, long duration debt / gilt funds give returns in double digits.
In between (March and November 2013 while the rate was at 5.14 %)
bond yields went up and down many times but the qualifying rate did not budge.
Over the past few days we have seen
the bond yield go up.
Among the many reasons for stock declines that pundits threw out there while
bond yields went up was that investors might be dumping stocks because the risk premium isn't worth being in stocks compared to being in bonds.
In a similar fashion, when the bond prices go down,
the bond yield goes up and the fixed mortgage rate also increases.
Government of Canada five years
bond yield went below 1.25 % and since last month and it is staying under that mark.
When
bond yields go up, bond prices go down.
Since April 11 - 2011, the 5 year
bond yields went from 2.87 %, down to 2.10 % on June 24th, and have gone up slightly to 2.34 % on July 1st....
PPF rate will go down over the long term if the Government
bonds yields go down slide the long term.
Not exact matches
That's exactly what has happened over the last month, as shown in this graph of the
yield on the 10 year US treasury
bond for the last year (keep in mind that
yields going up means prices
going down):
So, it is a very different market than it was 10 years ago, and you're
going to see a lot of corporate
bond issuance as these infrastructure projects
go out there, and you can capture some pretty good
yields and you know what you're buying because it's a corporate
bond.
And they're
going to pass them onto you and me as consumers, and that will push some of the inflation data higher, with some
bond -
yield reaction to it.
He started in high -
yield bonds and
went on during the internet boom to turn a million dollars in patent acquisitions into a portfolio of software intellectual property worth $ 150 million.
Last year, when the Fed hinted that it was
going to stop buying
bonds, tapering its quantitative easing,
bond yields jumped nearly 2 % points in just a few days.
Historically speaking, when the economy has gotten stronger, the price of Treasury
bonds go lower and the
yield goes higher.
If the 10 - year
yield goes above 2.63 %, however, he thinks it would be a «big deal» that could accelerate the
bond sell - off.
To be sure, the new generation of savers faces a challenge in building a nest egg when investing choices are bleak: Do they
go with risky stocks or super-low
bond yields?
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.
«We've been trying to tell you that for ages and all these guys come on your show and tell you for four, five years,
bond yields are
going up, they're
going to heaven and they never do.
yields will hit the highs on close end of the day... equity markets setting up to be slammed tomorrow maybe but today they have run over weak shorts in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising
bond yields and ballooning debt... rates will
go much higher and equities will have revelations as to what that means for valuations
When
bonds yield 1.75 % for investment - grade
bonds, then it's difficult to turn that into a 5 % -10 % return
going forward... If he wants to argue against that, and talk about Dow 5000 and bear and bull markets, then he's welcome to, but he's pushing at windmills in my opinion, and he belongs back in his ivory tower.
This leaves us roughly in the same position that we started the year, slightly overweight to spread product, i.e., investment - grade and high -
yield corporate
bonds and emerging markets (more recently, we also
went back to a slight overweight on commercial mortgage - backed securities).
It's hard to believe it's just a few years since countries like Ireland and Spain had to
go cap - in - hand to international lenders — at least if you look at their
bond yields.
When
bonds yield 1.75 % for investment - grade
bonds, then it's difficult to turn that into a 5 - 10 % return
going forward.
In all likelihood, rates will eventually
go higher, and US
bond funds could
yield negative returns.
The retailer has a very decent probability of
going into bankruptcy or experiencing further declines, yet the
bonds are still
yielding 11.4 % when they should be
yielding much more given the inherent risk in the position.
And I think that given higher volatility in the markets,
going into higher
yielding bonds or stocks, the risker ones, is unadvisable.
A rise of 1 - 2 % isn't
going to do much, and I don't think we'll rise by more than 1 - 2 % on the 10 - year
bond yield anyway, so nobody needs to panic.
Some central banks have even
gone to negative interest rates, a bizarre concept for many, and
bond yields across the curve are also ultra-low.
As the fed funds rate
goes up, so, too, will the
yields on short - term
bonds funds.
Essentially,
bonds (and cash)
yields go up and down with inflation.
The
yield on the 10 - year Treasury
bond climbed above 3 % for the first time since 2014, but of greater concern to many market participants were remarks in major corporate earnings reports suggesting that business conditions had likely hit their peak and were poised to deteriorate
going forward.
If nominal GDP growth is
going to be «lower for longer» then so will
bond yields.
The economy is
going to get worse before it gets better, but I think it's very hard to make a bear case at these levels, with dividend
yields well over stupidly expensive government
bonds in the US and the UK.
The hot money
goes more to junk -
bond (high -
yield) funds.
Composite Treasuries Sentiment: Taking a broader view of
bond market sentiment (our composite
bond market sentiment indicator combines the signal from futures positioning, fund flows, implied volatility, and global
bond market breadth), it's readily apparent that
bond market sentiment has seen a reset from relatively stretched bearishness to just on the bullish side of neutral (i.e. the indicator is saying participants have
gone from expecting higher
bond yields to expecting lower
bond yields).
Since the September low point last year US 10 - Year
bond yields have risen 90bps, this compares to 125bps from the low point in July 2016 through to March 2017, or if you count it as one big move they've
gone up 158bps.
It's like saying «It feels like this
bond is
going to deliver a 6 %
yield to maturity» when the
bond is objectively priced to deliver 4 %.
Everything
went up in February, government
bonds, credit, high
yield, equities, gold, oil — all rose.