Post-election, a focus on potential inflationary conditions and increased interest rates put upward
pressure on bond yields.
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.
Not exact matches
The current deadlock has raised
pressure on Greek
bonds on Thursday morning, sending the 10 - year
bond yields up by 5 basis point.
A large sell - down by Chinese authorities could spark a rise in US
bond yields, in turn putting
pressure on US government finances.
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.
Some investors might react by moving capital from the U.S. to safe, stable Canada, putting some downward
pressure on Canadian
bond yields and pushing up the loonie, said Burleton.
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.
Until the wayward states knuckle under, the ECB will hide behind EU rules against monetizing sovereign debt and let rising
bond yields keep the
pressure on politicians.
In other words, at a certain level higher
bond yields create real competition for stocks, particularly dividend stocks, and put downward
pressure on multiples.
Speaking of the Treasury, they've got to pretty massively increase the supply of
bonds to the market to fund the deficits induced by the tax cut and spending bill, which puts downward
pressure on bond prices and upward
pressure on yields.
As
bond yields surged
on Friday, high -
yielding segments of the equity market such as utilities and REITs came under the most
pressure, which shows that it won't take much of a rise in
yields to derail their rally.
If inflation
pressures become bad enough to force excessive rate hikes, what often follows is an inversion of the
yield curve — when the interest rates
on shorter - maturity
bonds rise above rates
on longer - maturity
bonds.
FRA: Chris,
on your article you mentioned there could be downward
pressure on long - term
bond yields as the U.S. treasury concentrates future debt issuance
on the short - term majorities.
From early May to mid June, domestic
bond yields followed global
yields lower
on concerns about potential deflationary
pressures in the US and related expectations of easier monetary policy abroad and in Australia.
On Tuesday, in response to evidence of accelerating
yield pressures, as well the recognition that QE2 was much further along than investors widely seem to believe, we substantially cut our
bond duration to about 1.5 years in Strategic Total Return.
Even though fixed - rate mortgage rates aren't traditionally impacted by changes to the overnight rates — fixed - rate loans move in tandem with 10 - year
bond yields — an increase in overnight rates will put
pressure on mortgage rates.
I expect that we'll be inclined to increase our exposure in long - term
bonds on any substantial price weakness and upward
yield pressure, but that inclination will be gradual and proportionate - I don't think it's useful to think of any particular level
on say the 10 - year or the 30 - year Treasury as a «buy.»
After that,
bond yields steadied
on Thursday but risk - taking prevailed, which is likely why the yen felt some selling
pressure and returned some of its gains
on most pairs.
It is possible the agencies review the sovereign credit which could put additional
pressure on US government
bond yields.
Rising
bond yields hint of rising inflationary price
pressures amid ideas world economic growth prospects are
on the upswing.
The equity markets are again under
pressure while
yields on Treasury
bonds have collapsed, reflecting that market's growing concerns about the weak economic outlook.