Good economic news pushes up both earnings and bond yields, with the percentage effect usually
greater on bond yields, making new commitments to bonds relatively more attractive, compared to stocks.
In my next post I will look at the impact of
taxes on bond yields, and discuss how municipal bonds fit into the picture.
Lenders don't warn people before rates increase so you need to keep a close
eye on bond yields and hope your timing is right.
Beata Caranci, chief economist at TD Bank, doubts another rate hike in the U.S. would have much of an
impact on bond yields in Canada.
Penalties that are
based on bond yields can also cost a small fortune, depending on bond performance.
(Eco-groups will supplement with what tools of persuasion they have as well; just don't rely on them for
wisdom on bond yields.)
The impact of this was most
pronounced on bond yields, though there was also a pause in the recovery in the US share market that had been underway and the US dollar weakened further.
A bullish bias is based
largely on Bond yields bottoming out, NOT TOPPING, along with Advance / Decline being back at new all - time highs while various former underperforming laggard sectors like Healthcare, have begun to outperform.
4) If I were to augment this, I would add in
something on bond yields; there is something significant going on there, but I'm not sure how I would use it.
Higher inflation will put additional
pressure on bond yields, and could also push the Fed to raise rates more quickly.
There is no doubt that the Fed is a large factor in our economy; the
impact on both bond yields and risk assets is very significant.
After Draghi's bold words about protecting the euro last week, markets expected him to deliver some sort of drastic action to do so and to relieve pressure
on bond yields, which have climbed steadily higher for Spain and Italy.
Bloomberg reported Thursday that after Draghi's bold words about protecting the euro last week, markets expect him to deliver some sort of drastic action to do so and to relieve pressure
on bond yields, which have climbed steadily higher for Spain and Italy.
Higher inflation will put additional pressure
on bond yields, and could also push the Fed to raise rates more quickly.
Post-election, a focus on potential inflationary conditions and increased interest rates put upward pressure
on bond yields.
That in turn led to the European Central Bank taking extraordinary steps that have kept the downward pressure
on bond yields.