Sentences with phrase «in bond interest rates»

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.

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.

The bond purchases, the third round of quantitative easing embarked upon by the Fed in the wake of the 2008 financial collapse and subsequent recession, have kept interest rates and bond yields low.

In a client note on Thursday titled «Yanking down the yields,» the interest - rates strategist projected that bond yields would be much lower than the markets expected because central banks including the Federal Reserve were reluctant to raise interest rates.

«The credit quality, this move up in interest rates, this loss of a four - decade uptrend in bonds, downtrend in yields, that's the source of the volatility which I think far surpasses these amazing developments technology has come across in the last couple of decades,» said Gordon.

Plus, in non-registered accounts, those dividends are taxed at a lower rate than bond interest.

He told bond investors and currency traders that they were mistaken in their belief that Canada would track the United States, where the central bank has raised interest rates twice since December.

As Poloz indicated in Toronto, if something went terribly wrong tomorrow, he could cut the benchmark interest rate by a full percentage point before trying something else, such as creating money to purchase bonds.

Specifically, there are concerns about what might happen should the tide turn in the bond markets when 30 years of falling interest rates reverses at a time when the Federal Reserve is preparing to tighten monetary policy by forcing rates higher.

But, what typically happens in this cycle, is interest rates start to accelerate, leading credit spreads — essentially the gap between how much more of a return bonds provide compared with US treasuries — to compress.

The so - called smart money is focused on currencies over bonds in anticipation of the Fed's long - awaited interest rate increase.

On Thursday, Argentina sold $ 7 billion in five - year and 10 - year dollar bonds in the international market at interest rates of 5.625 percent and 7 percent.

And it also means that bond market traders believe we're likely to see at least a quarter point hike in interest rates by the middle of next year.

Bond yields were a little lower, reflecting the divergent paths for benchmark interest rates in the U.S. and Canada.

As interest rates rise, the prices of existing bonds fall in order to make the yield of their fixed coupons competitive in the market.

He has implemented a massive stimulus policy by cutting the central bank's benchmark interest rate to negative, keeping the 10 - year Japanese government bond yield near 0 percent in an effort to control the yield curve and stepping up the Bank of Japan's asset purchases.

Protect yourself from a market pullback — and rising interest rates — by investing in short duration bonds.

Those figures come in an atmosphere of low interest rates, which depress bond yields, and a relatively flat S&P 500 over the 12 months ending June.

At some point, investors who are conflating high - yielding consumer staples stocks with bonds or who are taking interest rate risk in long - dated Treasurys will see drawdowns as well.

I've heard phrases like «I do not want to invest in bonds now because interest rates are going up» practically every day for the past seven years.

However, rates have retreated from over 8 percent in the last several weeks, and the credit risk of high - yield bonds can offer some diversification from the interest - rate risk of a portfolio of Treasury bonds.

«I think the pressure [to increase interest rates] will be there, because the Fed in the U.S. should stop printing money, and taper off as they say,» Mr. Flaherty, referring to the dialling back of U.S. bond - buying, told CTV in an interview aired Sunday.

To explain this concept a bit further, we already know that the longer a bond's term to maturity, the more sensitive its price is to changes in interest rates.

In a presentation earlier in September, Gundlach said that interest rates around the world had bottomed and he expected both rates and bond yields to move higheIn a presentation earlier in September, Gundlach said that interest rates around the world had bottomed and he expected both rates and bond yields to move highein September, Gundlach said that interest rates around the world had bottomed and he expected both rates and bond yields to move higher.

Bond yields rose and stocks slumped after an unexpected rise in consumer inflation to its fastest pace in a year, making it more likely the Fed will raise interest rates three or more times this year.

A softening in euro zone economic data and signs that inflationary pressures remain subdued, encouraging the European Central to hold off from raising interest rates until well into 2019, have supported bond markets in recent weeks.

Also, Ablin added a large portion of the recent rally involved a rotation from bonds into stocks as low interest rates forced investors to seek yield in the stock market.

And not just as a counterweight to more volatile equities — the steady decline in interest rates since the 1980s caused bond prices to rise, giving their holders» RRSPs a nice tailwind.

Interest rates are at historic lows, and a sharp spike in rates could drop the value of solar bonds.

The «Futures Now» team discusses moves in the bond market and where interest rates may be heading with Jackie DeAngelis.

But it also launched two new schemes, one to buy 10 billion pounds of high - grade corporate bonds and another — potentially worth up to 100 billion pounds — to ensure banks keep lending even after the cut in interest rates.

«This is the first time in 102 years, A, the central bank bought bonds and, B, that we've had zero interest rates and we've had them for five or six years... To me it's incredible.»

The Bank of England cut interest rates on Thursday for the first time since 2009, revived its bond - buying program and said it would take «whatever action is necessary» to achieve stability in the wake of Britain's vote to leave the European Union.

The simplified explanation for this aberrant investing disaster was a dramatic rise in interest rates during the period: Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in rates during the period: Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in 1981.

Only a year ago, during the height of the rising interest - rate fears tied to Fed tapering, investors were exiting bond funds in droves.

Bond yields snapped higher, adding to their already steep gains, and federal funds derivatives showed market expectations are moving closer to pricing in a full three interest rate hikes by December.

Trump's plans to increase fiscal spending has boosted bond yields — a change that would support higher revenue for banks currently languishing in a low - interest rate environment.

This tool uses the present value of bond portfolios, adjusted for interest rate and inflation expectations, to show current retirees how much in retirement savings they need today to account for every $ 1 they need in the future, assuming they hold a portfolio made up entirely of investment - grade bonds and longer - term Treasurys.

«In a bond mutual fund, you're invested in a pool of bonds with no set maturity date, which means more risk if interest rates rise.&raquIn a bond mutual fund, you're invested in a pool of bonds with no set maturity date, which means more risk if interest rates rise.&raquin a pool of bonds with no set maturity date, which means more risk if interest rates rise.»

Under that policy, the Federal Reserve has kept interest rates low and engaged for period of years in a campaign of aggressive bond purchases that have increased monetary supply and bolstered the stock market.

Bond prices fell, sending the yield on the U.S. 10 - year Treasury note to its highest level in four years, following newly released minutes from the U.S. Federal suggesting bullish sentiment among policy - makers and signalling more interest rate hikes ahead.

Given that the Federal Reserve was tapering from its bond - purchasing stimulus program (otherwise known as quantitative easing), Doll said, you had to be crazy bearish to not believe interest rates would fail to reach 3.5 % in 2014.

The Fed had lowered interest rates down to zero in terms of short - term rates and that pushed bond yields down.

The high - grade bond market is springing back to life as corporations race to issue new debt and get out in front of a possible Fed interest rate hike.

Betterment recommends its clients put their emergency funds in a portfolio with between 30 percent and 40 percent in stocks and the rest in a diversified allocation of bonds because interest rates are so low, Holeman said.

By secular reflation, we mean at least a decade in which short - and long - term interest rates stay habitually below nominal GDP growth and high grade bonds are not really bonds any more: delivering trend returns that are close to zero or even negative.

Residential real estate had taken on a healthy pace in late 2012 and early 2013 but has slowed since the Federal Reserve started talking about reducing its monthly bond purchase, which helps keep long - term interest rates low.

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.

For instance, in 1987 the rise in interest rates caused the price of the Vanguard Total Bond fund to plummet by a whopping -7.6 percent.

a government, corporation, municipality, or agency that has issued a security (e.g., a bond) in order to raise capital or to repay other debt; the issuer goes to an underwriter to get their securities sold in the new issue market; for certificates of deposit (CDs), this is the bank that has issued the CD; in the case of fixed income securities, the issuer of the security is the primary determinant of the security's characteristics (e.g., coupon interest rate, maturity, call features, etc..)