Sentences with phrase «of bond purchases»

The rate of a new bond is different than the rate of a bond I purchased?
The Yield of a Bond is the percentage of annual interest that you get paid for your bond depending on the current market value of the bond you purchased.
Here, policymakers confirmed they had initiated discussions on how to wind down the program of bond purchases.
Potential losses will typically be limited to the 10 % that is invested in the high - risk investments, depending on the quality of bonds purchased.
Depending on the structure of the bond you purchase, bonds are a reliable source of current income.
Rates began to increase over the last several months just on the anticipation that the Fed would announce that they would be reducing the level of bond purchases last month.
We think the speculation about a potential future tightening of monetary policy by the ECB — whether in the form of a tapering of bond purchases or a rise in interest rates — has moved too far ahead of the economic and political realities within the eurozone.
Second, Europe issues significantly fewer bonds than the U.S. Citi estimates the ECB could source up to 89 % of their bond purchases from existing holders rather than from new issuances.
«A rate hike even before the end of the bond purchases, which is something the markets have repeatedly been speculating about, does not fit into this picture of a very gradual exit,» he wrote following Draghi's remarks on Tuesday.
Still, 70 % said the Fed should continue reducing the monthly size of its bond purchases and end the program completely by the end of the year, with 58 % expecting that to happen.
Tapering refers to the Federal Reserve (Fed) slowing the pace of bond purchases in their Quantitative Easing (QE) program.
I'd imagine since we've had about a decade of QE the nominal price of the bond purchased in 1981 would rise significantly (since interest rates were at all - time highs in 1981)..
When the Fed announced a new round of bond purchases, interest rates on 10 - year Treasuries did drop.
The basis of a bond purchased at issuance and held to maturity will equal the principal amount of the bond at maturity.
The euro was down 3.05 % for the week against the dollar (see chart below), and investors rushed to buy the precious Eurozone bonds susceptible to be the target of the ECB in the next phase of bond purchase.
Also, the ECB will keep interest rates negative even as the amount of bond purchases decrease.
The effect of the story was magnified since there had been some predictions among market participants the ECB's next move would be to extend or widen the scope of its bond purchases.
Ironically, the story emerged shortly after another report predicted the fourth quarter of 2016 would see the highest level of quantitative easing (QE) by central banks around the world since shortly after the global financial crisis, largely due to the Bank of England's expansion of its bond purchases following the UK referendum result.
The Federal Reserve is currently in the process of unloading trillions of bonds purchased during the years of Quantitative Easing.
As Ambrose Evans - Pritchard has noted, «the Fed no longer even denies that the purpose of its latest blast of bond purchases, or QE2, is to drive up Wall Street, perhaps because it has so signally failed to achieve its other purpose of driving down borrowing costs.»
Some out - of - state munis may also be exempt from state and local taxes, depending on your state and the state of the bond you purchase.
In the U.S. markets today, stocks lost ground after minutes from the latest Federal Reserve meeting showed that officials might reduce the rate of bond purchases soon.
Actively managed bond funds have the people, data and tools for credit selection, can adjust for term structure and duration risk and have control over the timing of bond purchases and sales.
The European Central Bank (ECB) decided Thursday to cut the level of bonds it purchases every month, but extend the length of time that its stimulus program runs.
But in the absence of any suggestion that the currency's appreciation would delay a tapering of bond purchases, the single currency's rally — which by the end of August had taken it above US$ 1.20 for the first time since the start of 2015 — resumed, following a brief pause in the run - up to the ECB meeting.
Panigirtzoglou and his colleagues calculate that every one percent rise in stock markets will require around $ 25 billion of bond purchases from U.S. defined benefit pension funds alone.
He said that the central bank would stick to its guidance on the sequencing of the next steps, meaning that the first interest rate increases will only start well after the end of the bond purchases.
Investors have had a long time to digest the taper news: Their reaction to the Fed actually shrinking the size of its bond purchases is likely to be smaller than their reaction in anticipation of such a move.
While the Fed will eventually look to slow the pace of bond purchases, it could subsequently speed them up as well if economic data weakens, he said.
One move being speculated that the Fed might take is doing a third round of bond purchases, which could lower long - term interest rates even more.
For example, if the face value of the bond you purchased is $ 1000 and the coupon rate percentage of your bond is 5 %, then the annual interest you are paid for the bond is $ 50.
Until now, the ECB has stated that it stands ready to increase the level of bond purchases it makes in both duration and / or size, in case the economic outlook deteriorates in the euro zone.
The ECB decided Thursday to cut the level of bonds it purchases every month, but extend the length of time that its stimulus program runs.
The ECB announced in October that it will cut the level of bonds it purchases every month, starting in January, to 30 billion euros ($ 35 billion) from 60 billion euros.
The ECB announced in October that it will cut the level of bonds it purchases every month, but it extended the timeframe of the purchases until September of next year
Since the BOJ already owns close to half of all outstanding Japanese government bonds of a 10 - year maturity and below, its move was viewed by some market participants as, in effect, a tacit admission the BOJ had reached the limit for QE and possibly the first stage of a taper of its bond purchases.
Just as an FYI all of my bond purchases are at or better than a 7 % TEY.
Periodic reversals in the relationship include the «taper tantrum» of 2013, when both equities and bonds sold off in response to Federal Reserve hints about a tapering of its bond purchases.
Second, Europe issues significantly fewer bonds than the U.S. Citi estimates the ECB could source up to 89 % of their bond purchases from existing holders rather than from new issuances.
They're not taking stands on QEternity (Quantitative Easing 1, 2, 3, etc.) or tapering of bond purchases.
The Fed's System Open Market Account (SOMA is the account at the Fed that contains all of its bond purchase holdings.
As you might imagine, the «tapering» of bond purchases has caused the 30 - year fixed rate mortgage to climb to 4.5 % from 3.35 % just eight months ago.
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