Sentences with phrase «interest rates move higher»

«Even with limited choices, it appears some of the rise in contract signings could be from buyers wanting to take advantage of current affordability conditions before mortgage interest rates move higher,» he said.

Regarding the second, more important, point: «as interest rates move higher» would seem to be a very strong assumption, entirely dismissing the possibility that rates may not go higher from here.

If interest rates move higher, ETFs benchmarked to indices with longer durations will go down more in value than ETFs benchmarked to indexes that have shorter durations.

If interest rates move higher, the bond price must go lower to generate the new market yield.

Banks, brokerages, mortgage companies and insurance companies» earnings often increase as interest rates move higher, because they can charge more for lending.

If interest rates move higher, the bank could move the interest rate higher too to avoid losing out.

And if short -, medium - and long - term interest rates all move higher, bonds with the shortest maturities will see the smallest price declines.

As interest rates move higher, people naturally respond to the opportunity to earn interest by reducing the amount of cash they carry, both directly and indirectly.

First, I would like to see short - term interest rates move higher in response to improving economic conditions shortly after completion of the «taper.»

In the fixed - income arena, longer - duration1 bonds tend to be more negatively impacted when interest rates move higher as compared with shorter - duration fixed income securities.

The firm has warned for months that increasing debt loads at companies could stir up trouble as interest rates move higher, making it more difficult for them to refinance.

With interest rates moving higher, the supply of cheap money that helped fuel this market to new highs is drying up.

These did well even as the stock market was barely up and while interest rates moved higher.

I remember buying broken mortgage REITs in the mid-90s at less than half of their net worth after they had bought exotic CMO pieces, trying to create funds where the value rose as interest rates moved higher.

Interest rates moved higher due to predictions of higher inflation, as well as the expectation that the government will be required to issue more bonds to finance greater amounts of spending.

Not exact matches

NEW YORK, May 2 - U.S. stocks edged higher while the dollar and Treasury yields fell on Wednesday after the Federal Reserve held interest rates steady and said inflation had «moved close» to its target.

Gold, meanwhile, hit a six - week low of $ 1,307.40 an ounce, as the dollar strength and bets on higher interest rates kept it on the slide having already gone dropped through its 100 - day moving average.

As they fade, the need for continued monetary stimulus will also diminish and interest rates will naturally move higher,» Poloz said in notes for a speech to the Yellowknife Chamber of Commerce.

If the economy slows because of anticipated or real higher interest rates, we won't see unemployment moving under 7 %, and then the Fed is likely to reconsider and not «taper» at all!

(Bond yields move inversely with bond prices, and rising yields tend to signal expectations of higher growth and inflation ahead and, therefore, higher interest rates.)

In other words, there is no certainty that the Fed «taper» will cause interest rates to move higher than they already have.

The debate over interest rates has been raging for some time now, but that doesn't mean they have to move higher.

NEW YORK, May 2 (Reuters)- U.S. stocks edged higher while the dollar and Treasury yields fell on Wednesday after the Federal Reserve held interest rates steady and said inflation had «moved close» to its target.

With respect to interest rates, we continue to see a bifurcation for U.S. rates where shorter - dated yields move higher in response to possibly two or three more Fed rate hikes, while the U.S. Treasury 10 - year yield trades in a 2.25 percent to 2.75 percent range, with a temporary move toward 2 percent possible if geopolitical risks become realities.

The common assumption is that one day, interest rates will move higher and never come back down.

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 higher.

If it doesn't, if 2.6 is broken and move to 3 percent, then that basically says that interest rates are headed higher on a longer - term basis.»

Wednesday's moves come after three volatile sessions in which fear of rising inflation sent interest rates higher, pressuring equities.

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.

The United States may soon move to less accommodative monetary policies and higher long - term interest rates as its recovery gains ground.

Despite a relatively strong economy that's kept most dividend - paying companies strong and growing their payouts, historically low interest rates have caused many fixed - income investors to move to stocks instead, paying high premiums for the best dividend stocks.

The deterioration in operational performance, profit margins and financial strength of weaker listed companies could weigh down their stock prices when interest rates are moving higher.

Second, with emerging market interest rates already high, further increases will be smaller, limiting the threat to the bond prices, which move inversely to rates.

But keep in mind: More interest rate sensitive bonds generally have higher yields, so moving to a shorter duration investment could result in less income.

I'm crunching on other stuff so this will be brief, but I've been reading a fair bit of commentary about how Trump's fiscal plans — infrastructure investment and tax cuts — won't help the economy; «they'll be recessionary, they'll deliver higher inflation and interest rates, they'll force the Fed to move from brake - tapping to brake - slamming.»

Since the December 13th Federal Open Market Committee (FOMC) meeting, interest rates have accelerated their move higher.

All else equal, volatility in bond prices from interest rate moves is higher the longer you go out on the maturity and duration spectrum and the lower the level of interest rates.

«If inflation moves higher and interest rates lag, that could be the catalyst for a move higher,» he said, though he was not suggesting the existence of a bubble.

Just like a thorough vetting of cabinet nominees could have foreseen the scandals that later emerged, a thorough vetting and review process for the monster tax cut legislation would have cautioned against such radical moves in the face of massive maturing supply, a trimming Fed, and a debt - strapped consumer that is seeing higher interest rates on mortgages and credit cards as a result of the spike in rates.

«Every time the bond market moves dramatically and unexpectedly higher in yield, the consensus forecast plays catch - up,» says Matthew Hornbach, Global Head of Interest Rate Strategy for Morgan Stanley Research.

Stocks have done well since interest rates began to move higher in September 2017.

Savers hoping for higher interest rates on deposit accounts are probably going to have to wait awhile longer for yields on their savings to move upward.

The Fed kept interest rates unchanged following its policy meeting on Wednesday, a move that was widely expected, and noted that inflation was starting to inch higher, leaving it on track to raise borrowing costs in June.

«They think things are balanced right now and for the foreseeable future» in the context that they will continue to move interest rates higher at a gradual pace, he added.

The «taper tantrum» of 2013 unwound those moves, leading to sharp moves higher in real interest rates and a sharp move lower in gold.

Nothing has changed from a fundamental point of view aside from an increase in interest rates, which are moving higher «for the right reasons,» Liu said.

The MOVE index suggested that US Treasury volatility was expected to be very low, while the flat swaption skew for the 10 - year Treasury note denoted a low demand to hedge higher interest rate risks, even on the eve of the inception of the Fed's balance sheet normalization (Graph 9, right - hand panel).

A recent fear for high yield investors has been the prospect of normalising interest rate policy in developed markets — historically low interest rates have made the high yield market more sensitive to interest rate moves and effectively managing this risk will be important.

Market participants are looking forward to getting their first major reading on earnings from the biggest technology - sector players in the coming days, but for now, investor sentiment has been able to overcome what would ordinarily be a troubling rise in long - term bond yields that could signal a steeper move higher for interest rates in the near future.

First, mortgage interest rates may finally move higher.