Sentences with phrase «government bond rates»

The short - and medium - term «risk - free» government bond rates for the G - 5 countries all currently reside in negative territory (see Figure 1).

This will sound weird, but I am not as much worried about government bond rates rising, as I am with credit spreads rising.

Yet long - term interest rates are still remarkably low, with ten - year government bond rates at around two percent in the United States, around 0.5 percent in Germany, and around 0.2 percent in Japan as of the beginning of 2016.

In Switzerland, for example, short term government bond rates are -0.75 percent, and even a 10 - year security yields only -0.25 percent.

We want a significantly higher return than from a government bond — that's the yardstick, but not if government bond rates are 2 - 3 %.

Instead, you start with the local currency government bond rate and subtract out the portion of that rate that you believe is due to perceived default risk:

Mineral sands miner Iluka Resources says it will suffer a $ 25 million pre-tax charge to its profit as a result of the decline in the Australian government bond rate.

Fiscal credibility was restored and the ten - year government bond rate plummeted.

The bottom line of Draghi's answers was that the ECB would only buy government bonds rated lower than investment grade if the countries are in a bailout programme and the programme is not in a review period.

The third approach is to ignore government bond rates in the local currency entirely, either because you believe that they are not liquid enough to yield reliable numbers or because they contain default risk.

The Hussman Strategic Total Return Fund has the flexibility to invest up to 30 % of assets in securities outside of the U.S. fixed income market, including foreign government bonds rated A or higher, utility stocks, and precious metals shares, when market conditions suggest that such diversification is appropriate.

The U.S. housing market remains challenging, with limited consumer mortgage financing availability and negative news such as the U.S. Government bond rating downgrade and the European debt crisis, all contributing to weak consumer confidence.

Of course, they never did, for obvious reasons, and by the end of the 1980s, the fiscal credibility of the Finance Department was completely trashed and this was reflected in the risk premiums embedded in ten - year government bond rates.

Given that there are no truly risk free assets, long term government bond rates are generally used as a proxy, with the US 10 year Treasury Bond yield to maturity being the most used in valuations.

We want a significantly higher return than from a government bond — that's the yardstick, but not if government bond rates are 2 - 3 %.

Second, both the rating - based and sovereign CDS default spreads are US dollar based and netting it out against a local currency government bond rate can be viewed as inconsistent.

The list includes: real gross domestic product (GDP); GDP inflation, nominal GDP, 3 - month treasury bill rate, 10 - year government bond rate, exchange rate (US cents / C $), unemployment rate, consumer price index, and U.S. real GDP growth.

The private sector economists are surveyed for only a selective number of aggregate economic and financial indicators: real gross domestic product (GDP) growth; GDP inflation, nominal GDP;, the 3 - month treasury bill rate;, the 10 - year government bond rate;, the unemployment rate; the, consumer price index; the exchange rate (US cents / Cdn $); and finally, and U.S. real GDP growth.

At a 40 % debt - to - GDP and 2 % government bond rates, the government can easily run a deficit to finance its growth plans.

Instead, you start with a risk free rate in a currency where you believe that the government bond rate is a reliable measure of the risk free rate (US Treasury Bond, German Euro Bond) and then add to this number the differential inflation rate between the US dollar and the local currency.

This approach comes with its own perils that are layered on top of the assumption that the government bond rate is a market - set interest rate.

Wong wants a return potential of about 3 % to 5 % higher than the government bond rate, which puts him into the 5 % to 7 % annual return range.

Central bank policy rates and 10 - year government bond rates are low at 1.5 % and 3.0 %, respectively.

I use 10 - year swap rates here because they are more comparable than government bond rates.

In unit - link insurance plans, these are market linked and in traditional plans, the returns tend to be 2 % to 4 % less than the long - term government bond rates.

This re-investment rate can be the government bond rate, or another rate depending on each investor's availability of immediately available investment opportunities.