According to the panel's report, the restriction on investments does not permit life companies to generate a return of even 8 % in traditional policies given the drop
in yields on government bonds.
The rise
in yields on government bonds was particularly sharp in Japan.
Despite these gyrations
in yields on government bonds, the willingness to take credit risk has not diminished.
Not exact matches
A large sell - down by Chinese authorities could spark a rise
in US
bond yields,
in turn putting pressure
on US
government finances.
«But due to the low coupons prevailing, even a gradual rise
in yields will result
in negative returns
on a wide range of
government bonds over the coming quarters.»
LONDON, April 30 -
Government bond yields in the euro area nudged higher
on Monday as focus turned to preliminary inflation data from Germany and Italy, two of the bloc's biggest economies.
Rates
on government bonds in Germany and Switzerland fell further into negative territory after Brexit, while
yields on 10 - year Treasuries dropped below 1.5 % and touched record lows.
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.
Rising inflation expectations
in recent months have been reflected
in U.K.
government bond (gilt) prices with the
yield on 10 - year gilts touching its highest level since April this year at 1.509 percent
in Monday's session.
Though currently bank equity investors are cheering the steepening of
yield curves, meanwhile, the 2003 Japan episode should fix regulators» attention
on the growing home - bias
in government bonds.
Treasury
yields edge lower
on Thursday, with the 10 - year
government bond hanging around its lowest level
in about seven weeks
Treasury
yields retreat
on Thursday by falling rates
in European
government bonds after eurozone inflation data came
in weaker than expected.
Yields on U.S.
government bonds are already some of the highest
in the sovereign debt markets and are attractive to non-U.S. buyers
on an absolute and relative basis.
Trading across U.S.
government bond maturities was range - bound
on Wednesday, with
yields little changed
in spite of gains
in the equity market
in the last few sessions.
Caused by worries of a summer interest rate hike and uptick
in the U.S. dollar, gold and silver both stalled
in May but have since rallied
on the back of Brexit and with
government bond yields in freefall.
«Back
in 2007,
bond yields were 5 %
on a 10 - year [
government]
bond,» Kaufman says.
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.
The
yields on 10 - year
government bonds in Italy dropped to 1.56 percent and
in Spain to 1.39 percent.
Which explains why
yields on two - year
government bonds in Canada have surged
in recent weeks and are now at about parity with the U.S.
Treasury
yields fall after tepid eurozone inflation data spark German bund rally European
government bonds strengthened as inflation weakensTreasury
yields retreat
on Thursday by falling rates
in European
government bonds after eurozone inflation data came
in weaker than expected.
While
yields on government bonds remain unattractive, according to Stopford, investment - grade corporate
bonds offer a modest pickup
in yield — and high -
yield bonds, a more significant advantage.
The reason: a surge
in yields on US Ten Year
Government Treasury
Bonds, which hit a four - year high of 2.86 per cent.
In recent months, the
yield on US corporate
bonds, especially investment - grade securities, is a little more than 100 basis points compared to the
yield on government debt, dropping within striking distance of the lows seen post the 2008 financial crisis.
For a number of years, concerns had been expressed about the underpricing of risk
in a range of financial instruments and the associated search for
yield as investors sought higher returns
in non-standard financial products as the
yield on more standard products such as
government bonds was deemed to be inadequate.
The pound fell 1 % after the announcement while
yields on United Kingdom
government bonds declined, aided
in part by concerns expressed by the MPC that the uncertainty surrounding Brexit will continue to weigh
on domestic activity, which has slowed even as global growth has accelerated.
I thought it was interesting that
on September 5 — the day after the announcement — two - year
government bonds in Germany, Denmark, Belgium, Netherlands, Finland, France, Austria and Ireland all had negative
yields.
Longer - term rates are falling too: The
yield on five - year
government bonds has fallen from 1.9 per cent to 1.72 per cent
in the past 10 days.
UK
government bond (gilt)
yields have been
on the rise
in anticipation that the Bank of England (BoE) will increase rates
on November 2
in response to high inflation.
But
in the flurry of reports
on election results, coalition
governments and Spanish
bond yields, the financial media has lost its grip
on the commodity tra...
The changes come as
yields on five - year federal
government bonds rose to 2.18 % last Wednesday, the highest
in nearly seven years.
Abstracting from changes
in the composition of corporate
bond indices, spreads between
yields on government and corporate
bonds have shown a small net decline over the past three months (Graph 48).
The extent to which the valuation of U.S.
bonds is out of sync with the U.S. economy is best illustrated
in the graph below
in which the
yield on the 10 - year
government note is depicted against the Conference Board Consumer Confidence Index.
Yields on 10 - year Japanese
government bonds have also fallen back to be close to the lowest they have been
in the past eighteen months.
In the US, yields on 10 - year Government bonds fell through most of December and January, to around 4 per cent; they had mostly been in the range of 4 1/4 — 4 1/2 per cent through the second half of 200
In the US,
yields on 10 - year
Government bonds fell through most of December and January, to around 4 per cent; they had mostly been
in the range of 4 1/4 — 4 1/2 per cent through the second half of 200
in the range of 4 1/4 — 4 1/2 per cent through the second half of 2003.
This second trend borne from ultra-loose monetary policy has forced many investors to seek out higher -
yielding alternatives including dividend stocks, which,
on average,
yield more than 10 - year
government bonds in most major developed markets, including Canada (see chart below).
At the same time, the recent drop
in oil prices and ultra-low
yields on U.S and foreign
government bonds may be signaling slower growth abroad.
The US Fed indicated further moves would be dependent
on global factors and oil prices — a key detail signifying that future rate hikes seem likely to develop
on a slower scale, causing a European
government bond market rally
on Thursday, sending
yields lower
in the region.
The change came as the
yield on five - year federal
government bonds rose to 2.18 %, the highest
in almost seven years.
The
yield on long - term Canadian
government bonds has fallen to a mere 1.8 %, but that's sky high compared to the negative
yields seen
in Japan and parts of Europe.
In early July, the
yield on 10 - year
Government of Canada
bonds dipped below 1 % for the first time.
The extent to which the valuation of U.S.
bonds is out of sync with the U.S. economy is best illustrated
in the graph below
in which the
yield on the 10 - year
government note is depicted against the Conference Board Consumer Confidence Index.
The impact
on GDP and employment will likely hold down
government bond yields and,
in turn, fixed mortgage costs.
They focus
on corporate investment grade
bonds denominated
in dollars, euros, pounds or yen, but also consider
government and high -
yield corporate
bonds worldwide.
Mihir Worah, PIMCO's CIO of asset allocation and real return, discusses what kind of
government bonds look most attractive and where the firm is concentrating investments
on the
yield curve
in 2018.
The change comes as the
yield on five - year federal
government bonds rose to 2.18 per cent Wednesday, the highest
in almost seven years.
The U.S.
government sold $ 12 billion worth of 30 - year Treasury
bonds for a 2.172 %
yield on July 13, 2016, breaking the previous record of 2.43 % set
in January 2015.
This latest round of mortgage rate cuts was prompted by falling
yields on government bonds across a range of terms, said TD spokeswoman Barbara Timmins
in an e-mail.
Royal Bank of Canada is raising the posted rates
on some of its fixed - rate mortgages, becoming the second big bank this week to make adjustments following sharp increases
in government bond yields.
The present environment is characterized by unusually overvalued, overbought, overbullish conditions, with rising 10 - year Treasury
bond yields, heavy insider selling, valuations
on «forward earnings» appearing reasonable only because profit margins are more than 70 % above historical norms (fully explained by the negative sum of
government and personal savings as a share of GDP), with the S&P 500 at a 4 - year market high,
in a mature market advance, with lagging employment indicators still positive but more than half of all OECD countries already
in GDP contraction, Europe
in recession, Britain
on the cusp, and the EU imposing massive losses
on depositors
in order to protect lenders
in an unstable banking system where Cyprus is the iceberg's tip.
Yet here's how the
yield on Government of Canada
bonds changed
in the three years since his gloomy prediction: