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 proj
Bonds that provide a direct payment from the
federal government for a part of the interest paid
on bonds that finance government works proj
bonds 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.