I remember the early 1980s, when 10 - year government
bonds yielded more than 16 %.
Ten - year Treasury
bonds yielded more than 10 percent in the 1980s but under 3 percent in 2011.
In either event, the news that
bonds yield more than stocks hardly qualifies as news at all.
Conversely, if
your bond yields more than the market rate, then its» price will be greater than face value.
Given that a long - term bank CD or US Treasury
Bond yields more, you could have gotten a higher rate of return with another type of investment.
On a week where the calendar of events had every right to push
bond yields more decisively away from their most important recent technical level (2.795...
Not exact matches
LONDON, May 1 (Reuters)- The dollar broke into positive territory for the year and
bond yields were creeping higher again on Tuesday, as the recent rise in oil prices fuelled bets that the U.S. Federal Reserve will flag
more interest rate hikes this week.
LONDON, May 1 - The dollar broke into positive territory for the year and
bond yields were creeping higher again on Tuesday, as the recent rise in oil prices fuelled bets that the U.S. May Day holidays across Asia and Europe meant trading was thinner than usual, though there was
more than enough news flow to keep those...
NEW YORK, May 1 - The dollar broke into positive territory for the year and U.S.
bond yields inched higher again on Tuesday as the recent rise in oil prices fueled expectations the Federal Reserve could flag
more interest rate hikes at its policy meeting this week.
Stock markets were routed around the globe on Monday and
bond yields rose as resurgent U.S. inflation raised the possibility central banks would tighten policy
more aggressively than had been expected.
The benchmark 10 - year
yield hit a high of 2.626 % on March 13, briefly ticking above the 2.60 % threshold that the
bond - market veteran Bill Gross had said was «much
more important than Dow 20,000.»
While investors will have to find stocks with higher
yields, pay
more for them and take on
more risk in
bonds, the biggest change in a permanently low - rate world is that people will need to set aside
more of every paycheque if they want to keep the same goal for retirement income.
The Fed's low interest rate policy has driven
more and
more money into
bond funds as investors search for higher
yields.
The
yield on a 10 - year Canadian government
bond is just 1.7 %, compared to
more than 5 % a decade ago.
Bond yields rose to the highs of the day as Federal Reserve Chair Jerome Powell laid out a case where the Fed could raise rates
more than it has forecast.
The longest - term portion of the offering, $ 8 billion of
bonds maturing in 30 years, sold originally at 99.4 cents on the dollar to
yield 1.95 percentage point
more than comparable Treasuries.
Bond yields rose after Fed Chair Jerome Powell laid out a case where the Fed could raise interest rates
more than it currently forecasts.
(Repeats to additional subscribers) NEW YORK, April 24 (Reuters)- The U.S. benchmark 10 - year Treasury
yield topped 3 percent for the first time in
more than four years on Tuesday, a milestone that reflects the durability of the U.S. economic expansion and stokes the view the three - decade - old bull market in
bonds is numbered.
The biggest losers were energy (XLE), consumer staples (XLP) and materials (XLB), all down
more than 7 percent amid riding
bond yields — which makes dividend stock
yields less attractive and overrode other factors, like stronger oil prices and a weak dollar.
If the stock market gets wild again, junk
bonds will also get hit, but if you can wait out turmoil, the higher
yield will pay you
more income.
The real
yield on a 10 - year Treasury
bond was 0.72 percent on Nov. 17, and a 30 - year
bond yields a little
more than 1 percent after inflation.
Poland's 10 - year government
bond yield rose 7 basis points to 3.14 percent, its highest level in four weeks, rising
more than U.S. and German
yields which it often tracks.
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.
«A bear market in
bonds calls for
more than a global cyclical upswing, as not all forces that dragged
yields down over the past decades have suddenly vanished,» argued Peter van der Welle, a strategist at Robeco.
U.S. government
bond yields rose on Tuesday, as investors digested
more economic data and an auction.
Bond yields rose and stocks slumped after an unexpected rise in consumer inflation to its fastest pace in a year, making it
more likely the Fed will raise interest rates three or
more times this year.
Bond yields have swung higher this year as the Federal Reserve signaled a
more hawkish turn on monetary policy.
The SPDR Barclays High
Yield Bond fund gathered
more than $ 1.1 billion, or about half its total for the year, while the iShares iBoxx $ High
Yield Corporate
Bond took in $ 603 million, pulling it out of negative territory for the full year.
Then «tapering» talk by the Federal Reserve caused U.S.
bond yields to shoot up and draw back the capital that had earlier flowed into the emerging markets, putting
more downward pressure on financial markets and currencies.
«What we're doing is reducing exposure to
more cyclical industrial corporate credit risk around the globe — high
yield bonds, bank loans, investment - grade corporate
bonds,» said Collins.
More from The New York Times: For
Bond Investors, Low Expectations in a Low -
Yield World Emerging Market
Bonds Are on a Roll.
Separately, they also argued that
bond yields are the «Achilles» heel of global markets,» arguing that «market pricing on Fed rate hikes, however, remains modest and there is to our minds significant risk of a
more disorderly repricing of global
bond yields.
Bonds yields have fallen as safe assets attract
more interest, while U.S. crude oil futures have also fallen further below $ 39 a barrel.
What's
more, the iShares iBoxx High
Yield Corporate
Bond ETF (HYG) was No. 10 among all ETFs in August in asset gathering, according to ETF.com.
For instance, here is Germany's 5 - year government
bond yield which is clearly pricing in much
more demand ahead.
Higher
yields generally hurt stock prices by making
bonds more appealing to investors.
The
yield gap between U.S. 5 - year notes and 30 - year
bonds narrowed to 27.20 basis points, the tightest spread in
more than six years.
«When the Fed was raising rates and
bond yields were moving up, traditionally defensives don't do well, and
more cyclical stocks tend to do better and financials do better,» he said.
People are looking
more at the domestic situation and saying, «You know what, maybe we need a higher
bond yield,»» Yardeni says.
Bond prices fell, sending the
yield on the U.S. 10 - year Treasury note to its highest level in four years, following newly released minutes from the U.S. Federal suggesting bullish sentiment among policy - makers and signalling
more interest rate hikes ahead.
Bond yields have been on an upward march this year as higher inflation expectations spurred predictions of a
more hawkish Federal Reserve.
But the bank has taken
more extreme measures, such as ramping up purchases to
more than 40 percent of the market overall and saying it would control the
yield curve by keeping the 10 - year government
bond yield around 0 percent.
Most investors shy away from
bonds because they
yield (or return) less than equities and tend to be
more complex in nature.
On Monday, investors rushed into Treasuries as the S&P 500 and Dow Jones Industrial Average nosedived
more than 4 percent - reversing a move on Friday when a spike in
bond yields, which move inversely to prices, triggered an equity rout.
The Financial Times reports that $ 20 billion in dollar - denominated
bonds issued by HNA and its subsidiaries are due to mature in 2018 or 2019;
yields on three of those
bonds have spiked, doubling this month to
more than 18 %.
Second, the average time to maturity on U.S. debt is six years, meaning that most of the low -
yielding bonds now on the books will be exchanged for
more expensive debt over the next decade.
Rates for home loans eased up slightly as investors bought
more bonds, sending
yields down a few basis points.
Treasury
yields have been rising not because of rising risks but because the asset bubble in
bonds is deflating, inflation is rising, and investors are demanding
more yield.
Yields on U.S. 30 - year
bonds, which are
more sensitive than shorter maturities to the outlook for inflation, have jumped almost 40 basis points since last Friday and a $ 15 billion auction of the tenor on Thursday showed waning appetite for the securities.
But a continuation of favorable economic growth and low default levels — which we expect — and measured Federal Reserve tightening — which we also expect — should support
more narrow high -
yield bond spreads for some time to come.