Sentences with phrase «nominal yields on»

Tactically, now may be an appropriate time to consider taking on more interest rate risk; nominal yields on government bonds look attractive and we believe can persist through the quarter.

Coupon rate: The nominal yield on a bond or share of preferred stock.

Not exact matches

Brian Sack and Robert Elsasser explain that over most of the post-1997 period, yields on TIIS have been surprisingly high relative to yields on comparable nominal Treasury securities.

The spread between indexed and nominal yields has fallen, on average, well below survey measures of long - run inflation expectations.

Positions that have recently come undone include betting on steepening yield curves and inflation expectations (inflation - linked over nominal bonds)-- and in equity markets, picking value over growth shares.

Over the long term the nominal return on a duration - managed bond portfolio (or bond index — the duration on those doesn't change very much) converges on the starting yield.

If I assume a dividend growth rate of 6 percent (about the long - run average *), the current S&P 500 dividend yield of 2.1 percent (from multpl.com), a terminal S&P 500 dividend yield of 4 percent (Hussman says that the dividend yield on stocks has historically averaged about 4 percent), the expected nominal return over ten years is 2.4 percent annually.

The orange line is the implied inflation rate, based on the difference between the 10 - year nominal Treasury yield and the yield on 10 - year inflation - protected Treasuries.

Our model indicates that going forward, long - term yields will likely be subject to three upward pressures: (1) Our forecasted increase in inflation will boost nominal GDP growth; (2) As forward guidance is replaced by a data - dependent monetary tightening, volatility in short rates will increase; and (3) As the impact of QE on the Treasury market fades, long - term yields will trend back to their historical link with nominal GDP growth.

Inflation expectations, as measured by the difference between yields on 10 - year nominal Treasury notes and Treasury inflation protected securities (Tips), have risen to 2.25 per cent from a low of around 2.10 a month ago.

Yields on inflation - indexed bonds have moved in a similar way to nominal yields since the last StatYields on inflation - indexed bonds have moved in a similar way to nominal yields since the last Statyields since the last Statement.

In contrast to yields on nominal bonds, yields on inflation - linked bonds have for the past six months remained close to their lowest recorded levels.

The reasonable long - term predictability of nominal bond returns based on their starting yields.

The «nominal yield,» or coupon rate, is based on the bond's face value.

Real yields have moved similarly to nominal yields over the same period, with yields on 10 - year inflation - linked bonds currently around 3.5 per cent (Graph 52).

The level of yields — around 4 1/4 per cent at present — looks low not only on historical comparisons but also relative to normal benchmarks such as the growth rate of nominal GDP, which in the US is currently around 6 per cent (Graph 16).

Do Permanent Open Market Operations (POMO) systematically affect the nominal or real yields on 10 - year Treasury notes (T - notes)?

Based on our analysis, the split between sectors that benefited from rising nominal yields and those that suffered was clear: Defense - oriented sectors — those that are income - driven but light on growth — fared worse as the opportunity cost for holding them grew.

Jaguar is working on a new engine family, Ingenium, which has already yielded a 2.0 - liter turbodiesel, on sale this fall as the F - Pace's nominal price - leader model, the 20d.

Positions that have recently come undone include betting on steepening yield curves and inflation expectations (inflation - linked over nominal bonds)-- and in equity markets, picking value over growth shares.

Despite the sharp rise in inflation expectations, 10 - year breakevens (the difference between the yield on a nominal fixed - rate bond and the real yield on TIPS) remain depressed relative to their long - term history.

At a 10 - year Treasury yield of 1.7 %, interest on reserves of 0.25 %, and a monetary base now at about 18 cents per dollar of nominal GDP (see Run, Don't Walk), further purchases of long - term Treasury securities by the Fed would produce net losses for the Fed in any scenario where yields rise more than about 20 basis points a year, or the Fed ever has to unwind any portion of its already massive positions.

As I noted this past January in Sixteen Cents: Pushing the Unstable Limits of Monetary Policy, a collapse in short - term yields to nearly zero is a predictable outcome of QE2, based on the very robust historical relationship between short - term interest rates and the amount of cash and bank reserves (monetary base) that people are willing to hold per dollar of nominal GDP:

Yet while nominal bond yields have declined, the credit risk component of US Treasuries has been on an increasing trend since last year.

They are attempting to achieve high smooth yields well in excess of the nominal risk - free rate on a constant basis.

In our latest white paper, Senior Portfolio Manager Duane McAllister explains how the recent boost in short - term yields not only allows investors to once again earn a reasonable nominal return on their money without needing to take significant duration risk, it also provides an opportunity to earn a positive real return, since core inflation measures remain below the Fed's 2.0 % target.

Because of the inflation adjustment, this Fund's 30 - day yield may be more volatile, and differ substantially from one month to the next, than 30 - day SEC yields quoted on traditional (nominal) bond investments.

In this situation, the real yield would rise on both nominal Canadas and RRBs.

If I assume a dividend growth rate of 6 percent (about the long - run average *), the current S&P 500 dividend yield of 2.1 percent (from multpl.com), a terminal S&P 500 dividend yield of 4 percent (Hussman says that the dividend yield on stocks has historically averaged about 4 percent), the expected nominal return over ten years is 2.4 percent annually.

During that same time, the yield on the 10 Year Treasury note increased less than 1/2 of one percent; having a nominal effect on mortgage rates throughout the two year period.

This is compared to yields on MBonos (nominal bonds), as measured by the S&P / Valmer Mexico Sovereign Bond Index, which moved up only 32 bps, with the index returning 4.3 %, buoyed by its coupon carry.

Usually done based on models, the hedging ratio is not 100 % but leaves some exposure open but then captures some of the extra nominal yield offered by the higher yielding currency.

The orange line is the implied inflation rate, based on the difference between the 10 - year nominal Treasury yield and the yield on 10 - year inflation - protected Treasuries.

The yield on nominal five - year Treasury bonds has been consistently below 2 percent since late June 2010.

Subtract this rate from the yield on nominal bonds - currently 4.75 percent for the 10 - year note - for a measure of the inflation expected over the term of the bond.

Based on the spread between nominal and inflation protected yields, the expected 10 - year inflation rate is 2.75 percentage points, up more than 100 basis points in the past year.

The higher TIPS yields are relative to the historical real return on nominal bonds, the greater the allocation to TIPS and the longer the maturity can be.

As a result, while markets would appear to be quite expensive today based on nominal earnings yield, which is in the top quintile of all values over the past 140 years, the real earnings yield is less extreme because yoy inflation is so low.

Real Yields Another consideration is if TIPS yields are high or low relative to the real return on nominal bonds of the same matYields Another consideration is if TIPS yields are high or low relative to the real return on nominal bonds of the same matyields are high or low relative to the real return on nominal bonds of the same maturity.

Current TIPS yields are below the long - term average real yield of both nominal bonds and TIPS, but the steepness of the TIPS yield curve means longer - maturity TIPS are yielding higher percentages of both the historic real return on nominal bonds of the same maturity and the historical yield on TIPS.

Another is all the negative real yields on government securities, and sometimes even negative nominal yields.