Sentences with phrase «bond yields increase»

Bond yields increase as ratings decrease.
Investment grade bonds contain «AAA» to «BBB - «(or Aaa to Baa3 for Moody's rating scale) ratings and will usually see bond yields increase as ratings decrease.
Generally speaking, when bond yields increase, bond prices drop.
In summary, a mindful investing approach points toward a portfolio of mostly stocks (at least until bond yields increase substantially) that are invested for the long - term.
Investment grade bonds contain «AAA» to «BBB - «(or Aaa to Baa3 for Moody's rating scale) ratings and will usually see bond yields increase as ratings decrease.
The change came because of the bond yields increasing.
Some worry interest rate / bond yield increases will kill the stock bull market, but that possibility remains some ways off in our estimation.
Spanish bond yields increased yesterday after the Spanish bond auction showed weak demand by investors.
Exhibit 3 shows the seven periods during which 10 - year U.S. Treasury Bond yields increased 100 bps or more.
A steepening yield curve (when the difference between short - term and long - term bond yields increases) is generally seen as favorable for the economy, suggesting healthier growth.
3 days ago, rbi had not cut the rates little bit as per expectations of the market and so bond yield increasing sharply.
With bond yields increasing this week, bond prices fell.

Not exact matches

In the short - term, however, this increased leverage may actually be bullish for junk bonds, corporate bonds, emerging market debt and mortgage - backed securities as it brings higher prices and lower yields, he said.
Although there may not be a bond bubble, with investors starved for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier debt securities like junk bonds and emerging market debt.
French bond yields widened their gap against German bunds on Tuesday morning as opinion polls showed increased uncertainty regarding who will become the next president of France.
Because the central bank's purchases represent increased demand, it tends to push up government bond prices, thus lowering yields.
Investors increasing their current yield by taking credit risk in junk bonds have recently learned a similar lesson.
Buying corporate along with government bonds will increase your yield.
In this regard, our surveillance has been closely monitoring for any signs of liquidity strains associated with the recent increases in spreads for high - yield corporate bonds, as well as for idiosyncratic events affecting particular funds in this segment, such as the events surrounding the abrupt closing of Third Avenue Management's Focused Credit Fund last December.
Trump's plans to increase fiscal spending has boosted bond yields — a change that would support higher revenue for banks currently languishing in a low - interest rate environment.
Neither argument holds right now for holding any tactical cash, especially with no reasonable prospects for a near - term rate increase and the yield differential offered by bonds over cash right now.
They have also increased the cost of new fixed - rate mortgages as yields on the bond market have moved higher.
This increase in bond ownership can push prices up, and further depress long - term yields, which fall as prices rise.
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.
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.
Nickel set for biggest weekly increase since April 2009 Dow Jones Industrial Average reaches record on Thursday Gold heading for worst week in a month Largest increase in 30 - year Treasury yields since 2009 Italian bonds are poised for worst three - week selloff since 2011 Emerging - market stocks set for biggest three - day slide since August 2015 Mexico's peso plunges 12 percent in three daysCommodities
All in all, we believe eurozone bond yields may move a little higher, but any increase is likely to be capped by the ECB's ongoing level of purchases, at least until policymakers start to signal their next steps on monetary policy later in the year.
And the Fed increasing interest rates, plus rising bond yields, typically makes stock investors nervous.
Recent increases in inflation expectations have triggered repricing in the fixed - income markets, but we expect inflation and bond yields to trend only modestly higher.
Speaking of the Treasury, they've got to pretty massively increase the supply of bonds to the market to fund the deficits induced by the tax cut and spending bill, which puts downward pressure on bond prices and upward pressure on yields.
The chase for yield has also caused many investors to increase the duration in their bond holdings to earn more income.
Typically, a higher - rate environment will increase spreads for banks / insurers, but you're absolutely right that the 10 - year yield could stay flat, especially when the yields for government bonds of other countries are so low.
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.
Deregulation also has increased the economy's exposure to external shocks, such as the widespread rises in bond yields in 1994.
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
1: Widening credit spreads: An increase over the past 6 months in either the spread between commercial paper and 3 - month Treasury yields, or between the Dow Corporate Bond Index yield and 10 - year Treasury yields.
The price of the 30 - year Treasury bond increased 15/32, lowering its yield to 3.123 %
Recent increases in bond yields have reverberated across equity markets.
Liquidity risk High yield bonds that may have been easy to buy or sell when market conditions were calm can suddenly become very difficult to sell when volatility increases.
An unusually high yield relative to similar bonds is often an indication that the market is anticipating a downgrade or perceives that bond to have more risk than the others and therefore has traded the bond's price down (thereby increasing its yield).
Capital appreciation potential Companies issuing high yield bonds have the potential to turn around their financial standing, creating the opportunity for investors to realize capital gains as bond values increase, due to improving business conditions or improved credit ratings.
Credit risk High yield bonds are subject to credit risk, which increases as the creditworthiness of the issuer falls.
Credit Risk: Investors that are chasing yield in lower qualiity bonds are doing so by increasing their credit or default risk.
Second, an important consequence of rising US optimism has been an increase in US bond yields, some two - thirds of which has been imported into Canada — much more than in many other countries.
Key risks include increasing trade tensions and a renewed spike in bond yields.
Sudden decreases in inflation usually cause the opposite reaction, where bond yields decline and prices increase.
That may leave investors ill - positioned to face unexpected increases in bond yields
Even if the combination of Brexit and technology keeps UK GDP growth and inflation at modest levels, the risk of global bond yields and real yields rising further has increased.
U.S. government bond yields and the dollar rose, while U.S. stocks fell on Sept. 20 after the Federal Reserve signalled it still expects to increase interest rates one more time by the end of the year despite a recent bout of low inflation.
Investors will therefore require a higher yield than would otherwise be the case for this bond, increasing its credit spread.
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