The Treasury Department auctioned $ 29 billion in seven - year
notes at a high yield of 2.952 percent on Wednesday.
The Treasury Department auctioned $ 35 billion in five - year
notes at a high yield of 2.837 percent on Wednesday.
Not exact matches
Typically,
higher interest rates make existing bonds less attractive to buyers, since they can get new
notes at loftier
yields.
The
yield on the benchmark 10 - year Treasury
notes, which moves inversely to price, was
higher at around 2.314 percent, while the
yield on the 30 - year Treasury bond was also
higher at 2.877 percent.
«Net short positions on 10 - year Treasury
notes are
at historical
highs, implying that rising US bond
yields remains among hedge funds» major convictions.»
Mark Vaselkiv, portfolio manager
at T. Rowe Price,
noted that «Einstein said there were three great forces of nature: gravity, electro magnetism, and compounded interest...
high yield is an asset class that ultimately capitalizes on the latter.
Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both
higher income and a
higher principal payment
at maturity (although it should be
noted that TIPS typically have lower
yields than conventional fixed rate bonds).
The
yield on benchmark 10 - year Treasury
notes at the end of trading on Monday, down from 2.85 percent on Friday, the
highest level since January 2014.
Treasury
yields leapt again yesterday
at the long end, with the 10 - year
note climbing above 3.7 %, its
highest close since November.
The month of May closed on a
high note for bonds as the drop in
yields saw the S&P / BGCantor Current 10 Year U.S. Treasury Index closed
at a
yield of 2.47 %.
Note that the peak in
yields at the beginning of 2014 when the taper tantrum had run its course was
at 3.00 percent — quite a bit
higher than the 2.30 percent level
at the end of the most recent upward move.
The second was the introduction of several
high -
yielding portfolio credit - linked
notes that were targeted
at retail investors.
«Certain ratios
yield high survivorship
at some sites, but not others,» the new study
notes.
«It may still not be perfect, but it will
at least be substantially better than current vaccines,» says Kawaoka, who
notes no one else has successfully tried to produce
high -
yield influenza B vaccine virus before now.
It should be
noted, though, that we as a nation have been relying upon similar
high - stakes educational policies since the late 1970s (i.e., for now over 35 years); however, we have literally no research evidence that these
high - stakes accountability policies have
yielded any of their intended effects, as still perpetually conceptualized (see, for example, Nevada's recent legislative ruling here) and as still advanced via large - and small - scale educational policies (e.g., we are still A Nation
At Risk in terms of our global competitiveness).
Note from Daily Trade Alert: A couple weeks ago we launched a new regular column here
at Daily Trade Alert called
High -
Yield Trade of the Week.
Early in the week, the benchmark 10 - year U.S. Treasury
note broke above 3.1 percent for the first time since 2011, while the two - year
yield traded
at its
highest level in nearly 10 years.
JP Morgan's Thomas Lee
notes that if the S&P earnings
yield merely equaled the
high yield bond (a frequent past metric), the S&P 500 would be
at 1600.
Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both
higher income and a
higher principal payment
at maturity (although it should be
noted that TIPS typically have lower
yields than conventional fixed rate bonds).
Even as defined benefit managers pursued seeming diversification with bad payoffs as
noted above, and should have sought long term guarantees,
at a time like now, where guarantees are tremendously expensive, and
yields are
high because of possible default, it is a time to take risk, and fund the best entities that may not make it.
In general, average retail investors reach for
yield at the wrong time, and Wall Street is more than happy to facilitate that through structured
notes and other
high yielding investments where the risk is greater than the excess
yield.
Note from Daily Trade Alert: A few weeks ago we launched a new regular column here
at Daily Trade Alert called
High -
Yield Trade of the Week.
AGNC pays $ 2.75 annual dividend
yield: 11.80 % Its projected 10YOC is 11.80 %, payout ratio 129 % (
note, this is a REIT, the ratio will be
at or
higher than 100 %) 5 yr average growth: -6.88 % paid dividend since: 2008 # of years of consecutive dividend increases: 0 years
PSEC pays $ 1.33 annual dividend
yield: 12.90 % Its projected 10YOC is 19.47 %, payout ratio 171 % (
note, this is a BDC, the ratio will be
at or
higher than 100 %) 5 yr average growth: -3.43 % paid dividend since: 2004 # of years of consecutive dividend increases: 2 years
Note from Daily Trade Alert: We're launching a new regular column here
at Daily Trade Alert called
High -
Yield Trade of the Week.
Look
at the Thirty, and don't let the Five - year
note get a
higher yield than it.
The new debt raised by WFC and JPM will be primarily
at this holding company level, though presumably the bank loans and revolving loan will be fully secured by Heinz's subsidiaries and their assets, while new
high -
yield notes would be unsecured.
Yes, I know there are loads of statistics — and Wall Street's marketers excel most
at self - promoting numerology — that
high -
yield stocks have been a better investment than Treasury
notes, «over the long term.»
Note that the Sears bond has a
higher yield throughout the period, reflecting the fact a corporate bond trades
at higher yields than a government bond.
I like this little dig
at the denier - sceptic - contrarians who appear to be tree ring obsessed: «It is intriguing to
note that the removal of tree - ring data from the proxy dataset
yields less, rather than greater, peak cooling during the 16th — 19th centuries for both CPS and EIV methods... contradicting the claim... that tree - ring data are prone to
yielding a warm - biased «Little Ice Age» relative to reconstructions using other
high - resolution climate proxy indicators.»
At the end of 2018, will the
yield on the 10 - year
note be (a) below 2.50 percent (20 percent chance); (b) between 2.50 percent and 3.00 percent (70 percent chance); (c)
higher than 3.00 percent (10 percent chance)?