Sentences with phrase «direction interest rates moved»

For every 1 % interest rates move, the price of this bond could move approximately $ 4,000 up or down, depending upon the direction interest rates moved.
Depending on the direction interest rates move, the MVA may increase or decrease benefits payable under the Contract.

Not exact matches

But if you think interest rates are going to stay low, it's a move in the wrong direction.
he general trend was for average household debt to move in the opposite direction of the interest rate,» Statscan noted.
«The general trend was for average household debt to move in the opposite direction of the interest rate,» Statscan noted.
Bond prices, and thus a bond fund's share price, generally move in the opposite direction of interest rates.
First, substantial direct or indirect wealth transfers from the state sector to Chinese households will unleash a surge in household consumption as household income rises (and because the interest on bank deposits is an important source of income for most middle and lower middle class households, if the authorities reduce interest rates, as struggling borrowers are demanding, China actually moves in the wrong direction).
Given that interest rates characteristically rise quite early in the recovery process, there will inevitably be a longish period in which interest rates and activity are moving in the same direction.
For fixed income ETFs, bond prices, and thus an ETF's unit price, generally move in the opposite direction of interest rates.
For fixed income ETFs, bond prices, and thus an ETF's unit price, generally moves in the opposite direction of interest rates.
In the U.S., the Federal Reserve (the Fed) is moving toward a more «normalized» stance on interest rates, while other countries and regions are heading in the opposite direction.
By forward guidance I mean more than simple boilerplate language a central bank might use to indicate the expected direction of the next interest rate move.
In rising rate environments, credit spreads tend to move in the opposite direction to interest rates and can potentially generate income to help offset some of the impact of rising U.S. Treasury yields.
Bond prices and interest rates move in opposite directions.
Hints of a tighter monetary policy from the ECB and anunlikely interest rate increase from the SNB confirm that both central banksare moving in opposite directions.
«While the Fed is moving in one direction and getting ready to raise interest rates and embark on a tightening cycle, the European Central Bank is going in the other direction and easing monetary policy,» says Eric Viloria, a currency strategist at Wells Fargo in New York.
While the Fed is moving in one direction and getting ready to raise interest rates and embark on a tightening cycle, the European Central Bank is going in the other direction and easing monetary policy.
Home price decreases: Interest rates have really just one direction to go, if you assume that home prices will move inversely to interest rates (which is a reasonable assumption), then home prices may definitely Interest rates have really just one direction to go, if you assume that home prices will move inversely to interest rates (which is a reasonable assumption), then home prices may definitely interest rates (which is a reasonable assumption), then home prices may definitely decline.
Government bonds have typically been more sensitive to changes in U.S. interest rates, as they have a much higher proportion of foreign buyers and sellers from countries where local rates might be more stable or moving in the opposite direction.
Treasury prices move in the opposite direction of interest rates.
Although interest rates have seemingly little leeway to move in any direction but up, it's hard to predict when, or how fast, they'll rise.
And this can positively or adversely affect the stocks depending on the direction in which the interest rate is moving.
An easy way to grasp why bond prices move in the opposite direction as interest rates is to consider zero - coupon bonds, which don't pay coupons but derive their value from the difference between the purchase price and the par value paid at maturity.
Share prices and yield will be affected by interest rate movements, with bond prices generally moving in the opposite direction from interest rates.
On the other side of the border, interest rates are poised to rise and if our rates are moving in opposite directions, the U.S. dollar could continue to be strong relative to our loonie.
Inflation and interest rates behave similarly to bond yields, moving in the opposite direction from bond prices.
Although the relationship between interest rates and the stock market is fairly indirect, the two tend to move in opposite directions: as a general rule of thumb, when the Fed cuts interest rates, it causes the stock market to go up; when the Fed raises interest rates, it causes the stock market as a whole to go down.
The Fed has been cutting the key interest rate in order to get the economy moving in the right direction.
In rising rate environments, credit spreads tend to move in the opposite direction to interest rates and can potentially generate income to help offset some of the impact of rising U.S. Treasury yields.
If your credit score is 650 or «average», any move in an upward direction will benefit you in the long run with better interest rates and lower debt balances.
Going forward along with economic revival, I am expecting interest rate will move in downward direction.
Remember, interest rates and bond prices move in opposite directions, so rising rates mean lower prices for existing bonds.
Interest rate risk may be lower than some bonds as the investment's pricing tends to move in the same direction as stocks.
Interest rates and bond prices move in opposite directions so that as interest rates rise, bond prices usually fall, and vicInterest rates and bond prices move in opposite directions so that as interest rates rise, bond prices usually fall, and vicinterest rates rise, bond prices usually fall, and vice versa.
And then there's the risk that interest rates will start climbing and cause capital losses, since bond prices move in the opposite direction.
Because interest rates and bond prices move in opposite directions; if interest rates rise, the value of a fixed income security falls.
Among finance types like me, the fact that bond prices and interest rates move in opposite directions is so fundamental and obvious that it is used as a punch line.
Interest Rate Risk: Fixed income securities are subject to interest rate risk because the prices of fixed income securities tend to move in the opposite direction of interesInterest Rate Risk: Fixed income securities are subject to interest rate risk because the prices of fixed income securities tend to move in the opposite direction of interest raRate Risk: Fixed income securities are subject to interest rate risk because the prices of fixed income securities tend to move in the opposite direction of interesinterest rate risk because the prices of fixed income securities tend to move in the opposite direction of interest rarate risk because the prices of fixed income securities tend to move in the opposite direction of interestinterest rates.
A rise or a decline in yield from one day to the next of more than 10 basis points constitutes a major price move and therefore a major change in the direction of interest rates.
When interest rates were falling, I expected to see P / E ratios moving in the opposite direction — and vice versa.
They were issued at a time when interest rates were higher, and as rates fell, the price of these bonds rose above their par value (interest rates and bond prices move in opposite directions).
I'll bet many investors thought that interest rates only move in one direction, now they are beginning to realize that at low rates bond duration increases and when rates rise you actually lose money in your fund.
Bond prices generally move in the opposite direction of interest rates.
That publications like the Wall Street Journal need to repeat in virtually every article about bonds that interest rates and bond prices move in different directions is a clue that this market is less well understood.
A CMO tranche that pays an adjustable rate of interest that moves in the opposite direction from movements in a representative interest rate index such as the London Interbank Offered Rate (LIBOR), the Constant Maturity Treasury (CMT) or the Cost of Funds Index (COrate of interest that moves in the opposite direction from movements in a representative interest rate index such as the London Interbank Offered Rate (LIBOR), the Constant Maturity Treasury (CMT) or the Cost of Funds Index (COrate index such as the London Interbank Offered Rate (LIBOR), the Constant Maturity Treasury (CMT) or the Cost of Funds Index (CORate (LIBOR), the Constant Maturity Treasury (CMT) or the Cost of Funds Index (COFI).
The major risk in such Currency carried trade is that the exchange rate is rather uncertain and very often moves in a hostile direction, crushing the profit from the interest rate difference and sometimes a short motion in exchange rates can cause big or even huge damages, unless it is secured appropriately.
The variable rate will go up and down throughout the term, and you will never know which way it is moving, but there always is the potential that the interest rate will frequently move in a direction that's good for you.
Short - term and long - term interest rates may not move the same amount and may not move in the same direction.
Because interest rates and bond prices move in opposite directions, this policy has been a boon for bonds.
Taken together with increasing (private) investor aversion to (European) equity markets, prolonged low interest rates, and the eventual threat of higher inflation & lower entitlements, this seems to virtually guarantee a slow but sure convergence in ownership towards other Western countries (who will perhaps be slowly moving in the opposite direction).
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