U.S. government
debt yields continued their upward climb Wednesday, with the rate on the 10 - year Treasury note edging above the 3 percent benchmark it hit Tuesday for the first time since 2014.
Not exact matches
Against this environment, our strategists remain bullish on equities and
continue to favor emerging market currencies and, in the fixed income space, prefer local markets over external
debt and maintain their higher -
yielding yet better - quality bias.
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
Moreover, the
yield on industrial bonds in the Dow Jones Bond Average
continues to rise, further widening the risk premium on corporate
debt.
Year - to - date issuance for global high -
yield debt reached the highest level for any full year in September and
continues to expand.
Certainly, the extreme present bearishness on the treasury
debt market is helping to support prices where they are but once that is worked off we think the downtrend in prices (meaning up - trend in
yield)
continues.
The
continuing low level of government bond
yields has supported the search for
yield that has been evident over the past couple of years, with the spread between
yields on US government
debt and
yields on both corporate and emerging market
debt remaining around historical lows over the past three months (Box B).
At the same time, the
continued lack of fixed income supply around the world, especially in longer - maturity
debt, should
continue to keep
yields contained.
Foreign money — institutions, pensions, sovereign wealth funds, money managers, retail — will
continue to grab the remaining A-rated
debt with a positive
yield.
Ten - year German and U.S. government
debt yields stayed near historic lows below 2 percent, signaling that the intensive search for safety was
continuing.
With that said I will venture that
yield of XOM will
continue to rise for at least another year as the stock price slowly deteriorates to match the companies underlying fundamentals of increased
debt and reduction in FCF.
This game can
continue until the economic
yield of the assets is less than the
yield on the
debt used to finance the assets.
While we are mindful of potential risks, this backdrop
continues to bode well for riskier segments of the bond market such as corporate bonds, high
yield, and emerging market
debt.
CENOVUS ENERGY $ 12.26 (Toronto symbol CVE; Shares outstanding: 1.2 billion; Market cap: $ 15.1 billion; TSINetwork Rating: Average; Dividend
yield: 1.6 %; www.cenovus.com)
continues to sell assets to pay down its $ 12.5 billion
debt.
The departures have had no impact on the firm, according to Leccese, who adds that Proskauer will
continue to expand in key practice areas, including the finance practice generally, as well as the mergers and acquisitions group and the capital - markets group, particularly in the high -
yield debt area.
As long as the
debt markets
continue to be accretive, meaning if an investor can buy a property in New York City that
yields 4 percent with 3 percent capital costs, it still works.
KPMG anticipate
continued growth in the open - ended and
debt funds due to their stable
yield, diversification, and higher levels of liquidity for open - ended funds, said Phil Marra, national real estate funds leader.