Sentences with phrase «own government bonds»

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 main stock index dropped by as much as 2.4 percent earlier, while the benchmark 10 - year government bond yield rose to 6.944 percent, the highest since August 2017.
The yield on Canadian 10 - year federal government bonds have climbed to about 1.6 % from about 1.3 % on Election Day.
Put 20 % or 30 % of your money into GICs or government bonds to fund your immediate needs, like paying a mortgage and buying food.
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.
U.S. government bonds serve as a benchmark against which other bonds are priced — especially the Canadian variety, given the close ties between the two economies.
In addition to the aforementioned concerns, Golub noted fears about whether economic growth won't meet lofty expectations and signals being sent from the bond market, where a narrower gap between government bond yields is kindling fears that a recession is looming.
When we talk about bond market liquidity it's important to understand that there are lots of different «pools» out there such as high yield bonds, munis, government bonds, etc..
REITs have long been popular with income - seeking investors in this era of miniscule government bond yields.
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.
This is due to the fact that the reduction in private sector held government bond supply has been reduced which has shifted demand onto the corporate and muni markets.
And that means investors will rush into the comforting arms of Uncle Sam's liabilities - US government bonds.
Beyond that, Hartnett says global stocks are now underperforming global government bonds year - to - date, which he considers to be a troubling sign.
«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.
The term refers to a central bank using newly created money to purchase government bonds and other securities.
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 easiest way for the central bank to ramp up the size of its balance sheet would be to buy longer - dated government bonds.
It buys long - term government bonds, including those with durations longer than three years, in what is dubbed «rinban» market operations.
Canada's DBRS is the only credit rating agency willing to give Portugal an investment grade, which allows the European Central Bank to buy Portuguese government bonds.
There were a few dissents, but a majority of the Monetary Policy Committee also opted to create # 60 billion (about $ 100 billion) to buy government bonds over the next six months and # 10 billion to purchase corporate debt over 18 months.
Under its current asset - buying and lending tool, the BOJ limits the duration of government bonds it buys to three years because it wants to push down the cost of borrowing for companies, many of whom work in three - year investment cycles.
The gap between the 10 - year French and German government bond yields has widened to a five - day high as political uncertainty returned to France.
And so what Marks is saying is that it does not matter if your portfolio holds a bunch of, say, «AAA» - rated corporate bonds and highly - rated government bonds like US Treasuries, which are, in theory, highly liquid assets.
Expectations are high the Bank of Japan may boost its government bond purchases at its April 3 - 4 policy review, the first under new Governor Haruhiko Kuroda, who has vowed to do whatever it takes to hit the BOJ's new 2 percent inflation target.
Overseas, UK government bond yields spiked after higher - than - expected inflation data.
Portugal has been profiting from lower bond yields, but as the ECB is expected to gradually lower its government bonds purchases, yields and spreads are expected to rise, which could hamper the improvement in government finances.
The conservative investments, such as government bonds, favoured by baby boomers and retirees are producing virtually nothing, as today's low rates demolish returns.
The yield on a 10 - year Canadian government bond is just 1.7 %, compared to more than 5 % a decade ago.
Over the past few sessions, we've seen fairly consistent rises across European government bond markets and that's spilled over to the U.S.» said Anthony Valeri, senior vice president of fixed income research at LPL Financial.
It's similar to the U.S. government's quantitative easing, but rather than trying to buy government bonds to push interest rates lower — rates are already at zero — the goal is to push the yen down and combat chronic deflation.
Japanese government bonds skidded in their worst sell - off in more than three years, despite weaker stocks, accelerating a slide begun in the wake of last Friday's Bank of Japan easing steps that disappointed many investors.
The move is a novel way for the San Mateo, Calif., company to finance the enormous cost of installing panels on thousands of roofs — a typical residential system costs $ 25,000 — while appealing to retail investors who are on the hunt for better rates of return than they can find in savings accounts and government bonds.
U.S. banks would therefore not be able to trade or hold Canadian federal and provincial government bonds.
QE (as it's known in shorthand) involves the central bank's buying financial assets like government bonds.
Part of the reason to have bonds is to have stability on days like this; government bonds provide that stability, and they're acting like they should act, by providing that cushion to the equity volatility in your portfolio.
He has implemented a massive stimulus policy by cutting the central bank's benchmark interest rate to negative, keeping the 10 - year Japanese government bond yield near 0 percent in an effort to control the yield curve and stepping up the Bank of Japan's asset purchases.
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.
During the 19 th century, government bonds were often held by London - based investors.
Mineral sands miner Iluka Resources says it will suffer a $ 25 million pre-tax charge to its profit as a result of the decline in the Australian government bond rate.
Because the central bank's purchases represent increased demand, it tends to push up government bond prices, thus lowering yields.
Government bonds are a straightforward security, unlike, say, synthetic collateralized debt obligations stuffed with sub-prime mortgages.
Tighter regulation on bond markets has crimped appetite for bonds in the region, he said, noting that subscriptions for three government bonds issued at the end of last year lagged expectations.
But poll participants who answered a question on whether a bear market had begun in government bonds were evenly split.
The central bank said it will purchase Japanese government bonds so that the yield on the 10 - year note will remain at around zero percent.
Poland's 10 - year government bond yield rose 7 basis points to 3.14 percent, its highest level in four weeks, rising more than U.S. and German yields which it often tracks.
«But due to the low coupons prevailing, even a gradual rise in yields will result in negative returns on a wide range of government bonds over the coming quarters.»
At the time, respondents to the Compas poll recommended the biggest share of the portfolio go toward short - term cash investments (29 %) and government bonds (17 %).
Luckily, according to Associated Press, at least two dozen countries offer a new home to people willing to invest in a business, real estate or government bonds.
In fact, government bonds received one of the smallest allotments at just 8 %.
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