Sentences with phrase «on government bond»

Since you are bearish on bonds (or bullish on interest rates,) you can buy put options on government bond ETFs.

To push me to invest more, you could drop the interest rate on the government bond to 2 %, 0 %, -2 %, -4 %, -6 %, and so on — i.e., try to «squeeze» me into the Lotto Share, by making the alternative look shitty.

This includes negative real interest rates, which drop the yield on a government bond below zero.

Many investors would rather speculate in the stock market in lieu of receiving a low interest rate on a government bond.

And if you're retired and relying on government bond funds, the decline since July has wiped out several years worth of income.

The Spanish IBEX 35 is up 1 % percent this morning, and yields on government bonds are relatively steady after shooting higher on Monday and Tuesday.

Rates on government bonds in Germany and Switzerland fell further into negative territory after Brexit, while yields on 10 - year Treasuries dropped below 1.5 % and touched record lows.

When savings account rates and yields on government bonds are low, gold suddenly becomes much more attractive to hold as a store of value.

This index is very heavy on government bonds and mortgages, and in a world of potentially rising rates, nobody wants to be tied to the «Agg,» as it is known.

Tactically, now may be an appropriate time to consider taking on more interest rate risk; nominal yields on government bonds look attractive and we believe can persist through the quarter.

We are negative on government bonds overall but see short - maturity Treasuries now offering a compelling risk / reward proposition.

While yields on government bonds remain unattractive, according to Stopford, investment - grade corporate bonds offer a modest pickup in yield — and high - yield bonds, a more significant advantage.

Various quantitative - easing options focused on government bonds were shown to governors on Jan. 7 in Frankfurt, including buying only AAA - rated debt or bonds rated at least BBB minus, the euro - area central bank official said.

Despite these gyrations in yields on government bonds, the willingness to take credit risk has not diminished.

The rise in yields on government bonds was particularly sharp in Japan.

A compression between yields on government bonds has some market watchers worried that an economic slowdown could be looming.

Currently, the United States offers a much higher interest rate on its government bonds versus other G20 countries.

Interest rates on government bonds should increase correspondingly — hence the rating agencies» downgrades.

This does not account for a significant chunk of Cuomo's investment income, $ 27,803, which was tax - exempt interest on government bonds that the governor holds through a blind trust account with AMG National Bank.

The risk - free rate is customarily the yield on government bonds like U.S. Treasuries.

Credit spreads — the difference between the yield on government bonds and corporate bonds of the same maturity — remain where they are now.

As a result, yields on government bonds with maturities of 10 years or less are negative, according to Bloomberg data.

But even among these positive yielding markets, interest rates on government bonds there are low.

Over the last few years, interest rates have been low and the yield on government bonds has been running below the rate of inflation.

Interest earned on the government bonds held by the trust funds provided the remaining 10.1 % of income.

Generally, the market interest rate for any particular term of bond is represented by the yields on government bonds, as these are viewed as highly liquid and of very low default risk.

Real yields (the yield after accounting for inflation) on government bonds have risen recently, but are still around zero.

Yields on some government bonds have repeatedly plunged to new record lows.

This latest round of mortgage rate cuts was prompted by falling yields on government bonds across a range of terms, said TD spokeswoman Barbara Timmins in an e-mail.

This potentially long - lasting collapse in returns on government bonds is taking place against the backdrop of a protracted fall in returns for other core - assets such as blue chip stocks, and, more importantly, a silent demographic shock.

Trump's victory has sent the bond markets into disarray, with the yield on government bonds rising steeply.

I always assumed that you had to pay taxes on government bonds.

Investors may find credit spreads and the corresponding risk premiums to be an attractive means of earning positive real returns while real yields on government bonds are being repressed by central bank policies.

We continued to maintain a conservative duration posture, as valuations on government bonds continue to look rich.

(at 129) He elaborates on the objectives of the OMT programme as monetary policy measures, which trigger the transmission mechanism and have an impact on interest rates on government bonds of specific countries, and states that all these objectives were, with regard to the deterioration of the sovereign debt market for several states in summer 2012 legitimate.

This is a rate of return that far exceeds that available at prevailing interest rates on government bonds.

According to the panel's report, the restriction on investments does not permit life companies to generate a return of even 8 % in traditional policies given the drop in yields on government bonds.

At the same time, the prospect of continued low interest rates means less favorable yield on government bonds and fixed income products, making higher yielding investments backed by commercial real estate all the more attractive.

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 yield on Canadian 10 - year federal government bonds have climbed to about 1.6 % from about 1.3 % on Election Day.

Issuing bonds is one of the most routine things that happens in today's financial system; governments and companies get a sum of money today and pay interest on it over time, before paying back the principal at some agreed - upon future date, when the bond «matures.»

IIF noted in a recent report that plans to privatize several state - owned enterprises beyond the Aramco deal, a doubling in the size of the domestic stock market and the trading of local currency government bonds on the Saudi exchange, which began this month, all deepen the kingdom's capital markets.

The answer is straightforward: The Bank of Japan can buy government bonds on the open market, paying for them with either currency or deposits at the Bank of Japan, what economists call high - powered money.

«If they do target aggressively the 2 percent inflation target, and undertake a significant amount of QE, that may have an impact on underlying JGB (Japanese government bond) yields as investors become concerned over Japan's debt,» he said.

It's true that the government will still collect revenue far in excess of what it needs to pay interest on Treasury bonds, only about 7 percent of total spending.

A case in point: Citigroup and JPMorgan recently worked on the sale of $ 1 billion in bonds from the Republic of Iraq backed by the US government.

Huge purchases of longer - dated Japanese government bonds is a natural way to ease monetary policy, but central bankers must monitor the side - effects, Haruhiko Kuroda, the government's nominee to be the next Bank of Japan governor, said on Monday.

The BOJ currently makes the distinction because buying long - term government bonds for monetary easing could bind its hands on policy for longer than it wants and make a future exit from ultra-loose easing difficult.

The Greek government seems ready to tap the bond markets again as early as next week, a source close to the situation told CNBC on Tuesday, which would mark the first time since 2014 that the country has borrowed from the capital markets.

The Greek government might be preparing to return to the bond market but there are many structural problems that have yet to be resolved to make the economy more sustainable, an analyst told CNBC on Friday.