So if the 10 - year Canada bond stays flat, you're losing out on the 3.5 per
cent yield of the underlying bond (minus CIB's fees of just over 0.5 per cent).
Not exact matches
The Canadian dollar fell 0.6
of a
cent to 97.34
cents US as the U.S. dollar and bond
yields headed higher after the announcement.
On Wednesday afternoon, the benchmark U.S. 10 - year bond was
yielding 2.35 per
cent, up 15 basis points from before the Fed statement and up sharply from about 1.6 per
cent at the beginning
of May.
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.
At the same time, Canadian Tire Corp. has a valuation
of $ 11.5 billion and earns $ 10 a share — and pays a dividend
yield of 2.14 per
cent.
The company's lone outstanding junk bond, worth $ 1.8 billion and maturing in 2025, briefly dropped two points to as low as 85
cents on the dollar for a
yield of around 8 percent on Monday, according to MarketAxess data.
Without increasing the tax share
of output, 1 per
cent real growth over the next 40 years will
yield an inflation - adjusted increase in tax revenue per capita
of about 50 per
cent.
The report says the federation
of maple syrup producers in Quebec sets bulk prices and has a monopoly on bulk sales
of the product, or 85 per
cent of the province's annual
yield.
If we assume the average federal tax rate on capital income is 25 per
cent (most capital income is taxed in the higher 22 per
cent, 26 per
cent and 29 per
cent tax brackets), this
yields a revenue cost
of $ 6.6 - billion, or 7 per
cent of federal income tax revenues.
It currently pays about 7.2
cents each month, giving it a current
yield of about 5.3 %.
But as if exorbitant deal costs weren't touchy enough, Tabcorp also made a hash
of its half - year 12.5
cents yield, attempting to offer the Dividend Reinvestment Plan, despite the deed precluding the bookmaker from issuing more scrip while it subsumes the Queenslanders.
«We believe that the currency movements since the start
of 2018 have reflected the changing GDP growth dynamics between the US and Europe, and the corresponding lift in the US 10 - year bond
yield to 3.0 per
cent,» he says.
At the same time, some 70 per
cent of government - issued bonds are
yielding 1 per
cent or less, and when you combine the equity / bond value
of the 15 largest global markets they've never been more expensive.
These benefits would (i) largely go to developers and contractors for infrastructure projects like new pipelines that would happen even without new incentives and so be highly regressive; (ii) raise costs by failing to reach the tax - free pension funds, sovereign wealth funds and international investors that are the most plausible sources
of incremental infrastructure finance; (iii) not encourage at all the highest return maintenance projects like fixing potholes that do not
yield a pecuniary return for investors; and (iv) by offering credits at an unprecedented 82 per
cent rate, invite all kinds
of tax - shelter abuse.
Passenger
yields of the airline fell over 5 per
cent.
The reason: a surge in
yields on US Ten Year Government Treasury Bonds, which hit a four - year high
of 2.86 per
cent.
Enterprise agreements, which cover around one - third
of employees, continue to
yield annualised wage increases in the 3 1/2 to 4 per
cent range.
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.
The
yield on 10 - year bonds was 6.60 per
cent in early November, a rise
of 1.1 percentage points over the past six months (Graph 30).
Yields on 10 - year bonds fell by around 40 basis points, to 5.3 per
cent, by early March but are now around 5.9 per
cent — a net rise
of 25 basis points since the time
of the last Statement.
By the time
of the Bank's early August policy announcement, markets had priced into short - term
yields about a 50 per
cent probability
of a change in policy that month, and close to 100 per
cent by the following month.
As
of early August, the
yield on 90 - day bank bills was 6.4 per
cent.
The average rental
yield during the first quarter
of 2014 remained 5.34 per
cent for Dubai apartments and 4.58 per
cent for Dubai villas.
Enterprise bargaining outcomes in the early part
of the year also suggested little change in the rate
of wage growth; new federal enterprise agreements in the March quarter
yielded an average annualised increase
of 3.4 per
cent, unchanged from the previous quarter.
The average rental
yields recorded during the first quarter
of 2014 were 5.47 per
cent and 4.55 per
cent for apartments and villas, respectively.
Medium - term inflation expectations
of financial market participants, as implied by the difference between nominal and indexed bond
yields, have risen to around 3 per
cent in October, from less than 2 per
cent at the beginning
of the year.
The market expects a tightening
of 75 basis points by year end, and the
yield curve indicates that the implied cash rate in a couple
of years» time will still be under 4 per
cent.
The Wage Cost Index continues to record wages growth at an annual rate
of around 3 1/4 per
cent, and there has been little change in the wage increases being negotiated under enterprise bargaining, which continue to
yield average annualised increases in the 3 1/2 to 4 per
cent range.
The
yield on 90 - day bank bills had risen to 5.40 per
cent in early November, 0.65
of a percentage point above the previous cash rate target
of 4.75 per
cent.
Still, passenger revenues climbed in the first quarter from $ 3.1 billion last year to $ 3.5 billion this year, driven by traffic growth
of 11.4 per
cent and
yield improvement
of 0.4 per
cent.
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.
After reaching a new low
of a little over 0.4 per
cent in mid June,
yields rose to an intraday high
of 1.4 per
cent very quickly, before falling back to around 0.9 per
cent.
Inflation expectations, as measured by the difference between
yields on 10 - year nominal Treasury notes and Treasury inflation protected securities (Tips), have risen to 2.25 per
cent from a low
of around 2.10 a month ago.
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.
The dividend
yield on shares, at around 4 per
cent, remains relatively attractive compared with the general level
of interest rates.
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.
In the US, 10 - year bond
yields are currently 4.4 per
cent, around 120 basis points above the mid-June trough, reflecting the run
of positive economic data in recent months.
US bond
yields have fallen to around 5.4 per
cent, much the same as the cash rate, resulting (unusually for this stage
of the economic cycle) in a flat
yield curve.
Bond
yields in Japan fell to 1.125 per
cent, equal to the lowest recorded by historians in the past 4,000 years, and well below the level
of 1.75 per
cent reached by US bonds in the Great Depression (Graph 2).
On the S&P 500 they have averaged 1.5 per
cent, with
yields falling to around 1 per
cent around the time
of the peak in US share prices in 2000.
Yields on 10 - year bonds are currently around 5.90 per
cent, which is back around the levels
of a year ago after the sharp dip in the first half
of 2003.
Reflecting these positive developments, the Japanese stock market has risen by around 40 per
cent over the past six months and long - term bond
yields have risen by nearly 1 percentage point since the middle
of the year.
Expectations
of inflation, as measured by the difference between nominal and indexed 10 - year bond
yields, remain at around 2.3 per
cent.
For a while in March it looked like the puzzle
of low bond
yields was disappearing, as
yields rose noticeably to 4.65 per
cent after a stronger - than - expected CPI result.
The closely watched 10 - year
yield topped 3 per
cent last week for the first time since 2014, on the back
of rising expectations about inflation and rates.
The level
of yields — around 4 1/4 per
cent at present — looks low not only on historical comparisons but also relative to normal benchmarks such as the growth rate
of nominal GDP, which in the US is currently around 6 per
cent (Graph 16).
In the US,
yields on 10 - year Government bonds fell through most
of December and January, to around 4 per
cent; they had mostly been in the range
of 4 1/4 — 4 1/2 per
cent through the second half
of 2003.
Yields on 10 - year bonds reached a 17 - month high
of 6.0 per
cent in early December before falling back to around 5.7 per
cent, albeit around 110 basis points higher than their trough in mid June 2003.
So far, only a portion
of this rise in company profits has been passed on to shareholders in the form
of higher dividends; in April, the dividend
yield was 3.7 per
cent compared with 3.3 per
cent in January.
This saw the cash rate move above its target
of 5 per
cent for a time, and the
yield on Treasury Notes, which are eligible for purchase by the Reserve Bank in the course
of its market operations, move to 50 basis points below that for bank bills (from normally about 10 basis points below).