Not exact matches
LONDON, May 1 (Reuters)- The dollar broke into positive territory
for the year and
bond yields were creeping higher again
on Tuesday, as the recent rise in oil prices fuelled bets that the U.S. Federal Reserve will flag more interest rate hikes this week.
LONDON, May 1 - The dollar broke into positive territory
for the year and
bond yields were creeping higher again
on Tuesday, as the recent rise in oil prices fuelled bets that the U.S. May Day holidays across Asia and Europe meant trading was thinner than usual, though there was more than enough news flow to keep those...
It is not as if Ontario is having problem finding takers
for its debt and
yields on the province's
bonds are competitive with other provinces.
NEW YORK, May 1 - The dollar broke into positive territory
for the year and U.S.
bond yields inched higher again
on Tuesday as the recent rise in oil prices fueled expectations the Federal Reserve could flag more interest rate hikes at its policy meeting this week.
That's exactly what has happened over the last month, as shown in this graph of the
yield on the 10 year US treasury
bond for the last year (keep in mind that
yields going up means prices going down):
While investors will have to find stocks with higher
yields, pay more
for them and take
on more risk in
bonds, the biggest change in a permanently low - rate world is that people will need to set aside more of every paycheque if they want to keep the same goal
for retirement income.
Although there may not be a
bond bubble, with investors starved
for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage
on riskier debt securities like junk
bonds and emerging market debt.
With
bond yields globally in the dumps, Singapore's wealth fund GIC is looking at unconventional sources
for fixed income returns, Liew Tzu Mi, GIC's chief investment officer
for fixed income, said
on Thursday.
(Repeats to additional subscribers) NEW YORK, April 24 (Reuters)- The U.S. benchmark 10 - year Treasury
yield topped 3 percent
for the first time in more than four years
on Tuesday, a milestone that reflects the durability of the U.S. economic expansion and stokes the view the three - decade - old bull market in
bonds is numbered.
While Fink is right to point out that low interest rates are putting a large burden
on those of us trying to save retirement, he does not address the fact that central banks aren't primarily responsible
for the fact that
bonds of all types are
yielding less today than we're used to.
April 26 - U.S. stock index futures pointed to a strong open
for the tech - heavy Nasdaq
on Thursday as a slew of upbeat earnings from Facebook and Qualcomm helped set aside worries over rising U.S.
bond yields and corporate costs.
Two are focused
on high -
yield, or junk,
bonds, according to ETF.com, despite repeated warnings
on Wall Street that the segment of the market is headed
for the rocks.
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.
During a webcast presenting his 2017 outlook, Gundlach, the founder of DoubleLine Capital, said certain «second - tier» managers were focusing
on 2.6 % as an important level
for the 10 - year Treasury
yield — a threshold beyond which the bull market in
bonds would end.
Although it is fair to say that the recent uptick in volatility has in part reduced earlier concerns about prolonged low volatility and associated reach -
for -
yield behavior, it has placed added focus
on the resilience of liquidity, particularly in markets, such as the market
for corporate
bonds, that may be prone to gapping between liquidity demand and supply in stressed conditions.
More from The New York Times:
For Bond Investors, Low Expectations in a Low -
Yield World Emerging Market
Bonds Are
on a Roll.
Indeed, Randell Moore, who survey's economists as the editor of the Blue Economic Indicators, says the current consensus is
for the
yield on the 10 - year Treasury
bond to rise to 3.25 % by the end of 2015.
They'll be hoping the benchmark
for global borrowing costs rises even further, because their collective bet
on higher U.S.
bond yields has never been greater.
Second, the average time to maturity
on U.S. debt is six years, meaning that most of the low -
yielding bonds now
on the books will be exchanged
for more expensive debt over the next decade.
This year's budget provides a sensitivity analysis
for yields on 10 - year
bonds; should interest rates fall in line with the BMO projections, the Ontario government will see estimated gains of $ 400 million next year alone.
Markets around the globe are keeping a close eye
on the U.S.
bond market after the
yield on the 10 - year Treasury note topped 3 percent
on Tuesday
for the first time in several years.
«We've been trying to tell you that
for ages and all these guys come
on your show and tell you
for four, five years,
bond yields are going up, they're going to heaven and they never do.
The risk - free interest rate approximates the
yield on benchmark Government of Canada
bonds for terms similar to the contract life of the options.
The projected benefit payments are matched with the
yields on these
bonds to determine an appropriate discount rate
for the plan.
yields will hit the highs
on close end of the day... equity markets setting up to be slammed tomorrow maybe but today they have run over weak shorts in the face of rates... the federal reserve see's this and again will wonder if they are behind
on hikes, strong data, major expansion in credit, lack of wage growth rising
bond yields and ballooning debt... rates will go much higher and equities will have revelations as to what that means
for valuations
Yields on U.S. 30 - year
bonds, which are more sensitive than shorter maturities to the outlook
for inflation, have jumped almost 40 basis points since last Friday and a $ 15 billion auction of the tenor
on Thursday showed waning appetite
for the securities.
Nickel set
for biggest weekly increase since April 2009 Dow Jones Industrial Average reaches record
on Thursday Gold heading
for worst week in a month Largest increase in 30 - year Treasury
yields since 2009 Italian
bonds are poised
for worst three - week selloff since 2011 Emerging - market stocks set
for biggest three - day slide since August 2015 Mexico's peso plunges 12 percent in three daysCommodities
For the first time ever, Switzerland's entire stock of
bonds has fallen below zero, with the 50 - year
yield plummeting to negative 0.03 percent
on July 5.
Looking forward, even if you assume
bond yields settle down, probably somewhere in last fall's range of 2.2 % to 2.6 %
for the 10 - year Treasury note, this moderate year - to - date rise is still likely to inflict significant damage
on parts of the market.
Bond yields rose while stocks fell
on the ECB news, while the Great British Pound stood out with a strong performance, rising above 1.40 against the USD
for the first time this month after a reported «breakthrough»
on the Brexit talks regarding the transition with the EU.
There is no doubt that, based
on pure, cold, logical data, stocks are the single best long - term performing asset class
for disciplined investors who are not swayed by emotion, focus
on earnings and dividends, and never pay too much
for a stock, often as measured
on a conservative beginning earnings
yield relative to the Treasury
bond yield basis.
Also, here's a good one
on the potential
for lower
bond returns using a historical period
for the lower
yield environment you talked about:
For example, some investors may have taken
on more risk in their portfolios in recent years by moving into lower - quality
bonds or dividend stocks, in an attempt to generate additional
yield.
These steps include: efforts to simplify prospectus requirements
for retail vanilla
bonds and ease the personal liability of company directors; improving market transparency through the RBA's publication of new measures of corporate
bond yields; the lengthening of the government
bond curve; and the listing of certain fixed - income securities
on the Australian Securities Exchange.
Furthermore, we would expect any rises in global
bond yields to be at least partly imported into Canada — with possible implications
for the Canadian dollar — and with an uncertain net effect
on our economy.
The institutions are not only using the money to meet their own short - term financing needs, they are also borrowing additional money to purchase the
bonds of troubled countries and earn the spread between the
yields on those
bonds and the much lower rate the ECB is charging them
for money.
Matt Tucker breaks down the basics
for bond investors, focusing
on the definition of «
yield» and how it...
European government
bond and U.S. 10 - year Treasury
yields are trading at their highest levels in more than two months and the U.S. 30 - year Treasury
bond yield reached a high
for the year
on Tuesday.
In other words, at a certain level higher
bond yields create real competition
for stocks, particularly dividend stocks, and put downward pressure
on multiples.
Bloomberg reported Thursday that after Draghi's bold words about protecting the euro last week, markets expect him to deliver some sort of drastic action to do so and to relieve pressure
on bond yields, which have climbed steadily higher
for Spain and Italy.
Yet we see little fallout
on currencies
for now due to the likely muted change in
bond yields.
Monti, however, was critical of German and other insistence
on austerity and surrender of control as the price
for assistance to countries struggling with unsustainable
bond yields.
(Eco-groups will supplement with what tools of persuasion they have as well; just don't rely
on them
for wisdom
on bond yields.)
While
bond credit ratings and relative
yield can compensate an investor
for the relative risk of companies to make good
on their debts, the recent past has shown this is not always the case.
Junk -
bond ETFs rallied
on Wednesday, as markets breathed relief that the «fiscal cliff» is no longer a concern and as a result,
bond yields are under 6 percent
for the first time ever, and junk ETF share prices hit levels not seen in years in some cases, according to an article
on ETF Trends.
For many years now indexed
bond yields have been
on a downward trend.
Tonight
on Nightly Business Report, stocks tumble as
bond yields rise and tech earnings could be the next test
for the market.
U.S.
bonds have been rallying
for several months, but that came to an abrupt end last week as the
yield on the 10 - year U.S. Treasury
bond rose to 1.95 % while two - year
yields surged from 0.49 % to nearly 0.65 %.
Meanwhile, the
yield on Switzerland's 50 - year government
bond fell below zero
for the first time
on Tuesday, according to Reuters.
The markets finally woke up to this
on Wednesday, after sleepwalking
for the past year, as
bond yields and stock prices sank and the...