Sentences with phrase «on federal bonds»

As we went to press, top yields for a handful of five - year GICs were around 3 %, compared with less than 1.5 % on federal bonds of the same maturity.
You can get a five - year GIC with an interest rate of about 2 % right now whereas you might get about 1.2 % on a federal bond, explains Bortolotti.

Not exact matches

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.
That data raised a fresh round of questions about how the Federal Reserve will proceed on further cutting back on its massive monthly bond purchases, which have kept long - term rates low and encouraged a strong rally on equity markets.
The yield on Canadian 10 - year federal government bonds have climbed to about 1.6 % from about 1.3 % on Election Day.
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.
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 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.
Moreover, the bond market braced for potentially hawkish language from the Federal Reserve, which will begin its two - day policy meeting on Tuesday.
It also means the Federal Reserve is likely to forge ahead with its plans to cut back on its bond - buying activity later this year and to ultimately end the bond - buying program by mid 2014.
Less - than - clear indications from the U.S. Federal Reserve on whether it might scale back its aggressive bond - buying program, dubbed quantitative easing or QE, also caused investors to curb their enthusiasm.
Bond yields have swung higher this year as the Federal Reserve signaled a more hawkish turn on monetary policy.
NEW YORK, Jan 10 - Federal Reserve policymakers reacted coolly to a report on Wednesday that China could curb its massive U.S. debt purchases, pointing out that such rebalancing by countries can be healthy and would not likely disrupt the U.S. central bank's plan to trim its own bond portfolio.
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.
Then «tapering» talk by the Federal Reserve caused U.S. bond yields to shoot up and draw back the capital that had earlier flowed into the emerging markets, putting more downward pressure on financial markets and currencies.
NEW YORK, Nov 28 - The Federal Reserve faces the challenge of standing by as financial markets «correct» as the central bank trims its asset holdings, U.S. hedge fund manager David Tepper said on Tuesday, adding he was surprised the bond - yield curve was so flat.
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.
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.
Bond yields have been on an upward march this year as higher inflation expectations spurred predictions of a more hawkish Federal Reserve.
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.
Taxable municipal bonds The interest on some municipal bonds is taxable because the federal government will not subsidize the financing of activities that do not provide significant benefit to the public.
The advantage for issuers is that they receive a 35 % federal rebate on interest costs for these bonds.
Tax exemptions In general, the interest you earn from your tax - exempt municipal securities is exempt from federal income tax and in some cases, state or local income tax, depending on whether you are a resident of the state that issued the bond.
yields will hit the highs on close end of the day... equity markets setting up to be slammed tomorrow maybe but today they have run over weak shorts in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising bond yields and ballooning debt... rates will go much higher and equities will have revelations as to what that means for valuations
To the relief of borrowers around the world, the U.S. Federal Reserve Board is holding off on tapering its bond - buying program.
Although the income from municipal bonds held by a fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares.
The other provinces would have access to Canada Pension Plan surpluses, in proportion to the contributions made by their residents, through the sale of provincial bonds and provincially guaranteed securities on 20 year terms at the long - term federal bond rate.
The bill would also allow state and local governments to issue Build America Bonds that provide a direct payment from the federal government for a part of the interest paid on bonds that finance government works projBonds that provide a direct payment from the federal government for a part of the interest paid on bonds that finance government works projbonds that finance government works projects.
Municipal bond funds are exempt from paying federal taxes, and in some case even exempt from state taxes... Most investors that invest in mumi funds are in the higher tax bracket, so muni funds are a good choice, to avoid being taxed on the dividends.
These licenses and registrations subject us, among other things, to record - keeping requirements, reporting requirements, bonding requirements, limitations on the investment of customer funds, and inspection by state and federal regulatory agencies.
Despite the mainland's capital controls, its bond market joined the global market ructions on Thursday after the U.S. Federal Reserve surprised by saying it expected to hike interest rates three times next year, rather than the previously forecast two hikes.
In addition to providing a source of income and diversification, the interest income on municipal bonds generally is exempt from federal income tax and may also be exempt from state and local taxes for residents in the state where the bond is issued.
He was released on a $ 500,000 unsecured bond pending his appearance in New York City's Manhattan federal court.
If you buy a bond for less than face value on the secondary market (known as a market discount) and you either hold it until maturity or sell it at a profit, that gain will be subject to federal and state taxes.
His latest tweet Monday night weighed in on the recent announcement from the Federal Reserve that it would initiate another round of bond buying to help stimulate economic growth.
The jury's verdict came on the same day that a federal appeals court reversed the conviction of a former Jefferies Group LLC managing director who is serving prison time for lying to customers about the prices of mortgage - backed bonds.
It's easier for them simply to swap their junk mortgages to the Treasury or Federal Reserve for full - value U.S. Treasury bonds, and make the government take the loss — and presumably levy taxes to cover the interest charges on the augmented debt!
WASHINGTON (Reuters)- The Federal Reserve could begin reducing the size of its bond - buying stimulus program as early as September but might wait longer if economic growth fails to pick up in the second half of the year, a top Fed official said on Tuesday.
Since it is the last Friday of the quarter, I'm going to do something a little different and zoom in on three funds invested in federal tax exempt municipal bonds.
This time around, the dynamics of the market are even more complicated because bond prices have recently been driven by bets on whether the Federal Reserve will ease off the bond - buying programs it has used to stimulate the economy.
H.L.: The stock market, hedge fund managers, banks, and investors were all aflutter about Federal Reserve Chairman Ben Bernanke's comments about possibly tapering off on its monthly purchase of $ 85 billion worth of Treasury bonds and mortgage - backed securities.
Meanwhile, bond king Bill Gross found silliness on the trading floor, Larry Summers did not become the next Federal Reserve chairman, and U.K. Prime Minister David Cameron called for spending cuts in a gold - laden throne room — making a bigger fool of himself than millions of tweeters ever could.
interest from municipal bonds as well as distributions from mutual funds that qualify as exempt interest dividends; this income is generally not subject to regular federal income taxes; note that Fidelity reports this information to the IRS, and may be required to report the information to tax authorities in California among other states; the total amount or a portion of tax - exempt income (reported as specified private activity bond interest) must be taken into account when computing the federal Alternative Minimum Tax (AMT) applicable to individuals and may be subject to state and local taxes; you are required to report tax - exempt income on Form 1040, and may be required to report it on your state tax return as well
Generally, municipal bonds» interest payments are tax - free on the federal level and if they're issued by your state, you won't have to pay state taxes.
Interest rates have continued to be pushed lower and lower and lower and most of this is because the Fed keeps on adjusting that federal fund's rate and adjusting interest rates down in the way that they do that is by putting cash into the market and buying back bonds or short - term bonds with the federal fund's rate.
The Federal reserve also pays particular attention to interest rates on treasury bonds, and raise and lower interest rates for everyone by buying and selling treasuries.
Federal Reserve officials were largely in agreement on the decision to begin winding down an $ 85 billion - per - month bond - buying program.
WASHINGTON — Most business economists believe the Federal Reserve's controversial bond - buying stimulus program has helped boost the recovery, but differ on the effects of the healthcare reform law and other policies by President Obama and Congress, according to survey results released Monday.
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