Sentences with phrase «drives bond prices»

When considering these dynamics, keep in mind that bond prices and yields have an inverse relationship, so increased demand generally drives bond prices higher and yields lower, and vice versa.

In other words, when stocks plummet and the economy is in recession, interest rates typically fall, which drives bond prices up.

This should drive bond prices even lower as yields rise to match interest rates.

In the short run, rising equity values would tend to drive bond prices lower and bond yields higher than they otherwise might have been.

In the short run, rising equity values would tend to drive bond prices lower and bond yields higher than they otherwise might have been.

This should drive bond prices even lower as yields rise to match interest rates.

If you were going to trades futures on Treasury Bonds, for example, you'd want to analyse the fundamental factors that drive bond prices.

Many investors seem aware of their knowledge deficit when it comes to fixed income fundamentals: Sixty percent of those surveyed said they don't consider themselves knowledgeable regarding fixed income, and just 43 % said they understand the market and economic forces that drive bond prices.

If the rating goes down, it will drive its bond prices lower.

On one hand, you'll be get a better return on GICs; on the other, rising rates will drive bond prices down, making them less valuable.

If the rating goes down, it will drive their bond prices lower.

Not exact matches

«Hence, the fear of deflation driven by an acute oil price collapse receded, allowing bond yields to move higher,» he added.

The Institutionalization of Treasury Note and Bond Auctions, 1970 - 1975 A new study by Kenneth D. Garbade identifies the 1970 - 1975 period as a milestone in the U.S. Treasury market's evolution from fixed - price offerings of notes and bonds to market - driven auctions.

That is what has been forcing bond prices higher, and driving negative yields.

This time around, the dynamics of the market are even more complicated because bond prices have recently been driven by bets on whether the Federal Reserve will ease off the bond - buying programs it has used to stimulate the economy.

But this can drive the prices of these bonds up, making them expensive relative to lower yielding securities.

Credit spreads began an epic plunge, driving prices on previously trashed corporate bonds through the roof.

I understand bond prices are driven by the long end of the rate curve more importantly than the short end which the Central bank influences through the overnight bank rate.

These fears drove losses in the market prices of bonds in Italy, Greece and other troubled European countries.

If the whole thing — the rises in stock prices, in corporate earnings, in the housing market, even in job growth — is driven solely by the flood of money, or whether five years of zero - interest rates and trillions of dollars in bond purchases have succeeded at getting a more resilient economic engine for the United States up and running.

This skepticism about the future — even with asset prices rising — has created a negative feedback loop, driving investors to safe harbors such as cash, bonds, gold and yield - generating securities thereby reducing demand, inflation and growth in an ongoing vicious cycle.

The joint venture will take up closed - ended municipal - bond funds in the next year or so that when the predicted bond market collapse comes, it will drive fund prices down to as little as 40 % of net asset value.

As a result, future bond returns are likely to be driven more by income and less by price appreciation.

These stimulus measures have driven bond yields in Europe and Japan lower and bond prices there higher, and could continue to do so (source: Bloomberg).

Increased government spending would drive prices up, thereby sending Treasury bond yields higher.

Interest rate risk is the risk that a rise in interest rates will drive down the price of your bond or portfolio.

At the same time, the search for yield has sent investors flocking into riskier fixed income segments, driving up bond prices across the board.

«The institutional interest we see in commodities is driven much more by the desire for diversification than it is by the view that tactically commodity prices will go up in the short term,» said Bob Greer, real return product manager at America's giant bond investor PIMCO, which manages over $ 14 billion in commodity - linked strategies.

For example, when equity markets crash, money flows out of stocks and into safe havens like high - quality bonds, which drives their prices up.

Since bond prices and yields are like opposite ends of a seesaw, bidding up the price drives interest rates down.

As higher yields become available in safer vehicles like government bonds, CDs (although you have protection with Flex CDs), money markets, etc., and interest rates are perceived to continue upward, cash leaves high yield investments, driving the yields higher but sending the share price lower.

If the Germans had decided to issue bonds to striking workers instead of money, bond prices would have been driven to ridiculously low levels, driving interest rates to extremely high levels, creating an unwillingness to hold currency (which does not bear interest), resulting in a rapid deterioration in the value of money, and hyperinflation just the same.

They make other asset classes look relatively more attractive and drive the prices of equities, property and bonds higher.

Or we should expect gradual move toward nominal ZIRP that will drive prices of existing bonds higher due to «capital gains»?

That would drive down the price of existing bonds, which will appear less attractive compared to newer bonds with their higher interest payments.

It's not driven by valuations but simply a result of stocks being lower than my target because of a drop in stock prices and a gain in bond prices.

But as the Fed retreats from its loose monetary policy, interest rates could climb, driving down the price of existing bonds.

In the financial crises of the last several years, he says, investors have flocked to seemingly safe government bonds, driving up prices and driving down yields.

But this can drive the prices of these bonds up, making them expensive relative to lower yielding securities.

In the recent years, investors have rotated out of bonds and piled into the equities market driving up the stock prices.

Making the best decisions for your unique circumstances requires an understanding of the way bonds can be used to achieve a variety of your financial goals as well as a sense of how bonds are priced, the dynamics that drive the market and the various risks involved.

Headlines like «Bond Prices Fall as Fed Gets Aggressive on Inflation» and «Bond Vigilantes Drive Up Rates on Italy's Sovereign Debt» mean little to those outside of high finance.

The demand for bonds drove the prices of bonds down and the corresponding bond yield.

The yield on the two - year Treasury dropped 0.28 percentage points, the most since 2008, signalling investors were driving prices up as they rushed to buy the safe - haven asset (bond yields and prices move inverse to each other.

And second, the structural problems in today's bond market that will drive down bond prices in the next bond panic are largely irrelevant to stocks.»

In the early 90's we can see that stocks benefited from falling yields (higher bond prices) which drove up the PE multiple for bonds and made stocks relatively more attractive in comparison.

High yield corporate bonds tracked in the S&P U.S. Issued High Yield Bond Index have returned just under 5 % year to date but lost ground the past several days as fund outflows weigh on the market driving prices down and the weighted average yield (yield to worst) up by 22bps since last week to end at 4.88 %.

Driving interest rates lower and lower caused bond prices to keep rising higher and higher, which is the only reason investors would buy negative - yielding government bonds.

Commodity prices are often driven by unique economic or market factors such as inflation, and frequently move up or down in relatively low correlation with stocks or bonds.

From a practical standpoint, in terms of being able to translate academic findings into actual investment strategies, 4 factors or «premiums» have been found within stocks and successfully implemented (there are 2 factors that drive the behavior of bond prices):