Sentences with phrase «on bond interest rates»

Not exact matches

The threat of a trade war would also freak out the overseas investors we count on to buy our government bonds, and keep our interest rates at super-low levels.

The new bonds would capitalize on the province's ability to raise funds at low interest rates, said Finance Minister Charles Sousa.

LONDON, May 1 (Reuters)- The dollar broke into positive territory for the year and bond yields were creeping higher again on Tuesday, as the recent rise in oil prices fuelled bets that the U.S. Federal Reserve will flag more interest rate hikes this week.

NEW YORK, May 1 - The dollar broke into positive territory for the year and U.S. bond yields inched higher again on Tuesday as the recent rise in oil prices fueled expectations the Federal Reserve could flag more interest rate hikes at its policy meeting this week.

In a client note on Thursday titled «Yanking down the yields,» the interest - rates strategist projected that bond yields would be much lower than the markets expected because central banks including the Federal Reserve were reluctant to raise interest rates.

For example, interest - rate - sensitive income stocks and bonds tend to do well coming out of the trough, and more cyclical companies excel later on as the recovery gains steam.

The low interest rates that the Federal Reserve relied on to kick - start the economy, meanwhile, fed this same dynamic, making it easier for fast - growing companies to borrow money to grow further — and making bond interest look unattractive compared with stock dividends.

The reason average Americans should care about the «taper» is that higher interest rates on bonds also means higher interest rates on things like mortgages.

The so - called smart money is focused on currencies over bonds in anticipation of the Fed's long - awaited interest rate increase.

On Thursday, Argentina sold $ 7 billion in five - year and 10 - year dollar bonds in the international market at interest rates of 5.625 percent and 7 percent.

The interest rate on 10 - year bonds was 1.79 % at the end of 2014 — about half as much as the federal government had to offer to get investors to buy its debt a decade ago.

Still, combine the indications of the short - term bond market with today's 5 % GDP news and you get the sense that stock traders betting on low interest rates for longer periods of time may soon have to bail out.

Earlier this year, countries on Europe's periphery (notably Italy and Spain) faced rising interest rates on newly issued government bonds, which threatened to push them into insolvency.

While Fink is right to point out that low interest rates are putting a large burden on those of us trying to save retirement, he does not address the fact that central banks aren't primarily responsible for the fact that bonds of all types are yielding less today than we're used to.

Late last month, chemical company Altice had to cut back a bond offering and increase the interest rate to 11 % on a portion of a multi-billion dollar deal.

Butler: We could see interest rates moving up and this will have an impact [on] long bond investors.

The biggest impact would be on interest rates and bond prices, he says.

NEW YORK, Feb 5 - The dollar rose against a basket of currencies on Monday as the U.S. bond market selloff levelled off after the 10 - year yield hit a four - year peak on worries that the Federal Reserve might raise interest rates faster to counter signs of wage pressure.

The Bank of England cut interest rates on Thursday for the first time since 2009, revived its bond - buying program and said it would take «whatever action is necessary» to achieve stability in the wake of Britain's vote to leave the European Union.

The simplified explanation for this aberrant investing disaster was a dramatic rise in interest rates during the period: Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in rates during the period: Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in 1981.

World shares and bonds rallied on Thursday, after the Federal Reserve left U.S. interest rates unchanged and slowed the pace of future hikes, weakening the dollar and lifting commodity prices.

While U.S. savings bonds have lost popularity as a means of long - term savings due to the low interest rates they currently earn, some retirees have been holding on to bonds that were issued when rates were higher.

Investors are set to snap up the bonds with an interest rate of less than 3.4 %, the Financial Times reported on Thursday, or about half the rate Sprint would have had to pay if it issued the bonds without any backing.

Higher inflation this year should push the Fed to raise the federal funds rate at a faster pace, which will have knock - on effect on interest rates and the bond market.

Bond prices fell, sending the yield on the U.S. 10 - year Treasury note to its highest level in four years, following newly released minutes from the U.S. Federal suggesting bullish sentiment among policy - makers and signalling more interest rate hikes ahead.

Interest rates on ultra-safe investments like Treasury bonds have been hovering near record lows since the Great Recession.

Residential real estate had taken on a healthy pace in late 2012 and early 2013 but has slowed since the Federal Reserve started talking about reducing its monthly bond purchase, which helps keep long - term interest rates low.

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.

A carry trade is typically based on borrowing in a low - interest rate currency and converting the borrowed amount into another currency, with proceeds placed on deposit in the second currency if it offers a higher rate of interest or deploying proceeds into assets — such as stocks, commodities, bonds, or real estate — that are denominated in the second currency.

The risk - free interest rate approximates the yield on benchmark Government of Canada bonds for terms similar to the contract life of the options.

In addition, interest rates on U.S. Treasury bonds are used as barometers for determining global economic health [9], and as pegs for many other interest rates, including American mortgage and student loan rates [10, 11].

The Central Bank of Hungary kept its key interest rate at 1.35 percent on the back of falling commodity prices, boosting demand for forint bonds.

Interest rate risk is simply the fact that bonds fluctuate in the price the market is willing to pay for them based on changes in interesInterest rate risk is simply the fact that bonds fluctuate in the price the market is willing to pay for them based on changes in interestinterest rates.

Interest rate expectations are constantly changing over the short - term but over longer periods bond returns are more or less based on math.

During times of recession the economy is stimulated with low interest rates and once they get low enough, the yield on bonds and other fixed investments becomes so unattractive that money starts to flow into equities.

The settlement also calls for the Malaysian side to take over all interest and principal payments on the two 2012 1MDB bonds, which charge interest rates of nearly 6 percent and are due for full repayment by 2022.

Tax cuts on wealth are promoted as if they will be invested rather than used to pay the financial sector more interest or be gambled on currencies and exchange rates, interest rates, stock and bond prices, credit default swaps and kindred derivatives.

The NAV (net asset value) of a bond fund will move up or down based on a number of factors such as changes in interest rates, credit quality, and currency values (for international bonds) for the different bond holdings in the fund.

On the other hand, U.S. fixed - income ETFs had outflows of $ 1.7 billion as bond prices sagged and interest rates climbed on the prospect of a more aggressive FeOn the other hand, U.S. fixed - income ETFs had outflows of $ 1.7 billion as bond prices sagged and interest rates climbed on the prospect of a more aggressive Feon the prospect of a more aggressive Fed.

ST gov» t bonds offer you the safest investment from a default risk perspective, but you earn a lower rate of interest on them.

Changes in the interest rate environment have had a very large impact on bond returns over the long run.

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.

The study concludes that U.S. news releases on labor market conditions, real GDP growth, and consumer sentiment have large effects on interest rates in both the U.S. Treasury and German sovereign bond markets.

In a rising interest rate environment, the risk that investors have in owning all bond mutual funds and / or bond ETFs for their bond allocation is that both vehicles are managed on a relative return basis versus a benchmark index.

In theory, you could hold an individual bond to maturity and never lose any money even though the market value of the bond may fluctuate based on changing interest rates and other factors (but you could still lose out to inflation over time).

You could potentially lose money in your bond fund depending on interest rate movements around the time you actually need to make your payments.

We've created a new tab in the Fixed Income Analysis tool that can help you estimate the hypothetical impact of interest rate changes on the value of individual bonds and bond funds.

Use this tool to model the potential impact of interest rate changes on both the value of your individual bond and CD positions and your overall portfolio.

What we have really seen over the past several years, in terms of the appreciation of markets and the decline of interest rates based on what the Fed has been doing, is a result which has eliminated the possibility of investors in bonds and stocks to earn an adequate return relative to their expected liabilities.

Jon Smith, of DT Investment Partners, discusses the effect of an interest rate hike on bond markets... see why we prefer individual bond holdings over engineered ETFs in this environment.