Sentences with phrase «bonds at these low yields»

Not exact matches

The yield on the benchmark 10 - year Treasury note was lower at around 2.998 percent at 1:07 p.m. ET, while the yield on the 30 - year Treasury bond was lower at 3.18 percent.
The yield on the benchmark 10 - year Treasury notes, which moves inversely to price, was lower at around 2.43 percent, while the yield on the 30 - year Treasury bond was also lower at 3.046 percent.
The yield on the benchmark 10 - year Treasury notes sat slightly lower at 2.221 while the yield on the 30 - year Treasury bond slipped to 2.797 percent.
«Valuations are at extremely attractive levels considering bond yields and low inflation expectations.
Following the report, the yield on the benchmark 10 - year Treasury note was lower at around 2.959 percent at 3:46 p.m. ET, while the yield on the 30 - year Treasury bond was lower at 3.128 percent.
Germany's benchmark 10 - year bond yield was up almost 2 bps at 0.58 percent in early trade, above a one - week low of 0.56 percent hit on Friday.
«Bond yields are at the lowest level that most retirees have seen in their lifetime,» Zemsky said.
The yield on the benchmark 10 - year Treasury note was slightly lower at around 2.944 percent at 12:28 p.m. ET, while the yield on the 30 - year Treasury bond slipped to 3.106 percent.
In order to understand the impact of longer duration and low yields, let's use a real - life example of one of the largest bond funds today and look back at its history.
debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions
The real risk for bonds, especially at these low yield levels, will almost always come from inflation.
With market volatility hitting multi-decade lows, junk bond yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices of risky assets that could attend even a modest upward shift in risk premiums.
Although they are not as egregiously expensive as 10 - year Swiss government bonds — currently trading at a yield of negative 0.25 % — Canadian bonds are offering a relatively paltry real return, even after adjusting for low inflation.
With Group of Seven (G7) sovereign bond yields at historically low levels, some income - seeking investors have turned to higher - volatility securities like dividend - paying stocks in an attempt to capture additional income.
At that time, the 10 - year Treasury bond had a duration of just 6 years (due to the very high coupon payments and yield - to - maturity available), while the S&P 500 had an extraordinarily low duration of just 16 years.
With rates at historic lows, many investors have used high - dividend stocks, rather than low - yielding bonds, in pursuit of income.
«We are hoping «mom and pop» can do a little bit better than the bond market at a time of historically low yields
The latest trend started in July when bond yields bottomed at record lows.
For example, it does not include euro bonds («reverse Yankees») that are hot in Europe, where junk bond yields are at a ludicrously low 2.35 % on average, and the high - grade yield is just above zero.
In bond markets, yields on 10 year bonds are now at their lowest levels for two decades.
(2) Interest rates are absurdly low, if prices start to jump quickly no sane person would hold a treasury bill / note / bond at these yields.
The Fear Trade, of course, is driven by low to negative real interest rates — when inflation erodes away at government bond yields — deficit spending, a weaker U.S. dollar and geopolitical uncertainty.
If five years from now the yield simply returned to its level of a decade ago (and just in case you think I'm cherry picking, over the past 25 years it has averaged a 7.5 % yield and at the low in 1981 was twice that), bond investors would suffer a meaningful loss of capital.
In a country where the unemployment rate is at a 20 - year low and industrial output is approaching historical highs, fueling inflation concerns, a 10 - year government bond yield of 1.5 % is totally inappropriate and will naturally spur people to buy real estate.
These conditions comprise the following: S&P 500 overvalued with the Shiller P / E (the ratio of the S&P 500 to the 10 - year average of inflation - adjusted earnings) greater than 18; overbought with the S&P 500 within 3 % of its upper Bollinger band (2 standard deviations above the 20 - period average) at daily, weekly, and monthly resolutions, more than 7 % above its 52 - week smoothing, and more than 50 % above its 4 - year low; overbullish with the 2 - week average of advisory bullishness (Investors Intelligence) greater than 52 % and bearishness below 28 %; and yields rising with the 10 - year Treasury bond yield higher than 6 - months earlier.
And during each of those prior yield curve inversions my answer has been the same: Because in two years your high - yielding bond will mature and you'll be renewing at much lower rates.
From around 5.4 per cent at the time of the previous Statement, yields on 10 - year bonds fell to a low of 5.1 per cent in mid December, but have since risen back to near 5.4 per cent.
This led to quite a sharp narrowing in the spread in bond yields between the two countries, from around 130 basis points at the time of the previous Statement to a low of 85 basis points in early December.
Bonds have been in a bull market for 35 years and yields, though off their 2012 lows, remain at historic extremes.
10 - year Canadian government bond yields had declined to as low as 0.90 % during mid-February, when recession fears hit an apex but ended the quarter at just over 1.2 %.
Their cost of capital is a function partly of low interest rates and part of the implicit share price is a function of the fact that investors have looked at equities for dividends rather than bonds for yield because the bond market is so expensive.
We are now at a time when equities are relatively expensive, bond yields are relatively low.
Notwithstanding this rise, bond yields in Japan remain at historically low levels, with 10 - year yields at 1.8 per cent.
The yield on the benchmark 10 - year Treasuries slumped 2 basis points to 2.97 percent, the super-long 30 - year bond yields also plunged 2 basis points to 3.15 percent and the yield on the short - term 2 - year traded nearly 1 basis point lower at 2.48 percent by 12:35 GMT.
Historically, the REITs have yielded as low as 0.73 % over bonds and as high as 10 %, suggesting that current yields are at the low end of the range.
Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both higher income and a higher principal payment at maturity (although it should be noted that TIPS typically have lower yields than conventional fixed rate bonds).
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.
With yields having been so low for so long, bonds are suddenly providing some competition with equities at these higher yields levels.
There are other examples of speculation such as some European junk bonds trading at yields so low that no company should ever have to suffer the indignity of bankruptcy but for pure entertainment value you can't beat Jesus coin.
Yields moved lower as the yield - to - worst of the S&P / BGCantor Current 10 Year U.S. Treasury Bond Index is now at a 2.49 % which brings it back down to level Read more -LSB-...]
You can see government bond yields in the advanced nations are at historic lows.
Even so, with the market's valuations today being cheaper than the two previous times that the S&P 500 traded at these levels — and with the yields on the two primary alternatives, bonds and cash, being very low by comparison — this could be a great time to own companies by investing in th stock market.
U.S. bonds are at the lowest yield in more than a year and oil continues to tumble.
After touching a low of 2.7 per cent in June, yields on 10 - year indexed bonds now stand at around 3.3 per cent, 15 basis points higher than their level in early May.
If we look at the Bloomberg Barclays Global Aggregate Financial Yield to Worst (below) we can see that in 2008 yields of global financials bonds spiked above 8 % and since then, they have gradually retreated to lower levels.
As yields go out, it lowers the collateral value of the bonds and as we were saying earlier before we began the show, Richard, the global swaps marketplace is over $ 600 trillion and at least $ 400 trillion of that is in bonds.
Even knowing the underlying scenario it boggles the mind to continue to see the RIDICULOUS LOW YIELDS that inhabit the charts of various EU sovereign bonds (Spain 10 - year 1.26 %; Belgium 0.82 %; Portugal 1.65 %; and Italy at 1.74 %).
I do think there is merit in looking at general rates (we likely won't return to the rate environment of the early 1980's for example), but I wouldn't be getting excited about stock prices at these levels for the sole reason that bond yields are really low.
The yield on the benchmark 10 - year Treasuries slipped 1 basis point to 2.95 percent, the super-long 30 - year bond yields also fell 1 basis point to 3.12 percent and the yield on the short - term 2 - year traded 1-1/2 basis points lower at 2.48 percent by 10:45 GMT.
All the excess liquidity being added to Europe and suppressing bond yields makes European equities, which trade at markedly lower multiples than in the U.S., relatively attractive.
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