Sentences with phrase «effect on the bond market»

The effect on the bond market been to de-invert the curve, with the long end rising significantly.

I agree that the cause of the crash can make a huge difference in the effect on the bond market.

Not exact matches

Higher inflation this year should push the Fed to raise the federal funds rate at a faster pace, which will have knock - on effect on interest rates and the bond market.

Daniel Hanson, an analyst for Height Securities, told Morning Consult that the current default likely won't have a major effect on the municipal bond market because its effects were already «priced in» ahead of time.

Here's the effect that rise in rates had on certain maturities in the bond market in May and June based on iShares ETFs:

The study concludes that U.S. news releases on labor market conditions, real GDP growth, and consumer sentiment have large effects on interest rates in both the U.S. Treasury and German sovereign bond markets.

Jon Smith, of DT Investment Partners, discusses the effect of an interest rate hike on bond markets... see why we prefer individual bond holdings over engineered ETFs in this environment.

From this point forward, even Ben Bernanke knows that aside from some extreme type of measure that the economic effects and the effects on equity markets and bond markets are going to be limited.

Bond fund withdrawals might have had a greater effect on markets where there is less trading, such as municipal securities — but even there, redemptions from bond funds would have accounted for less than 10 percent of the primary dealers» tradBond fund withdrawals might have had a greater effect on markets where there is less trading, such as municipal securities — but even there, redemptions from bond funds would have accounted for less than 10 percent of the primary dealers» tradbond funds would have accounted for less than 10 percent of the primary dealers» trading.

As the Fed tapers, many observers worry about the effect on the stock market, while others are worried about the risk of inflation or deflation and everybody is worried about the effect of higher interest rates on economic growth and for the bond market.

At the Shadow Open Market Committee fall meeting on Sept. 15, economist Peter Ireland of Boston College argued that the effect of reducing the balance sheet is ultimately equivalent to an open - market sale of bonds by the Fed of the kind it would undertake in order to push up the fed funds interestMarket Committee fall meeting on Sept. 15, economist Peter Ireland of Boston College argued that the effect of reducing the balance sheet is ultimately equivalent to an open - market sale of bonds by the Fed of the kind it would undertake in order to push up the fed funds interestmarket sale of bonds by the Fed of the kind it would undertake in order to push up the fed funds interest rate.

If interest rates rise or fall during the time you're holding a bond investment, it can have a big effect on the bond's market value.

In general, the effect of the election is to slightly decrease the rate at which the market discount is deemed to accrue, which will generally produce a beneficial result for the bondholder by reducing the amount of ordinary income recognized on a sale of the bond prior to maturity.

Long - term interest rates are largely a function of the effect the bond market believes current short - term interest rates will have on future levels of inflation.

Mild movements in interest rates will often have a minimal effect on the price of bonds whereas abrupt swings in interest rates, market sentiment or investor fears, as we've observed in markets recently, can change the valuations of bonds dramatically over a short period of time.

The major banks recently raised some of their fixed - rate mortgage rates to reflect their costs of borrowing on bond markets, which have more effect on longer - term mortgage rates than does the Bank of Canada's overnight rate.

These bonds are bought by investors on the open market for less than their face value, and the company uses the cash it raises for whatever purpose it wants, before paying off the bondholders at term's end (usually by paying each bond at face value using money from a new package of bonds, in effect «rolling over» the debt to the next cycle, similar to you carrying a balance on your credit card).

When you have many different parties going into the markets seeking income, not caring where they get it from, and a shock hits one part of the market, the effect flows to other areas If all of a sudden yields on junk bonds look cheaper, the yield trade - offs of buying junk and selling dividend paying common stocks looks attractive.

But six months later came the comeuppance in the bond market, which had some knock - on effects to the economy, but primarily was just a bond market issue.

Since bonds trade either at par, at a premium or at a discount, a bond's market value will have considerable effect on its return at maturity.

While in the OMT case the Court of Justice ruled on the compliance with the Treaties of the ECB programme of acquisition of bonds of the Member States in the secondary market (the OMT programme), in the Danish case the CJEU restated the application of the horizontal direct effect of the principle of non-discrimination on the ground of age.

Mike Greeff, CEO of Greeff Christies International Real Estate, is also optimistic on the effect on the market: «Any type of easing in interest rates will encourage individuals to get involved in the property sector, as well as bring relief for current bond holders in that it will have two possible effects: it could either create additional disposable income in their budgets, or it will allow for a higher than required bond repayment which can in essence take years off your bond.»