Sentences with phrase «rate as the government bond»

The sole investment available is a new Treasury security that earns the same interest rate as the government bond fund available to federal employees.

Not exact matches

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.

The conservative investments, such as government bonds, favoured by baby boomers and retirees are producing virtually nothing, as today's low rates demolish returns.

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.

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

Higher rated bonds, known as investment grade bonds, are seen as safer and more stable investments that are tied to corporations or government entities that have a positive outlook.

We see the vote to leave the EU as a negative risk event, which is likely to support the bid for longer - dated government bonds and for a rate cut in the UK.

We assumed that in each period a 30 - year bond is issued at prevailing interest rates (long - term government bond plus 1 %) and that amount is invested for the next 30 years in a portfolio of large - cap stocks while paying off the bond as an amortized loan (as if it were a mortgage).

As yields across the world continue to be pushed lower by highly accommodative monetary policies, international investors are fleeing low (or negative) rates offered by many DM government bonds.

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.

As noted earlier, arbitrageurs obtain a twofold gain: the margin between Brazil's nearly 12 % yield on its long - term government bonds and the cost of U.S. credit (1 %), plus the foreign - exchange gain resulting from the fact that the outflow from dollars into reals has pushed up the real's exchange rate some 30 % — from R$ 2.50 at the start of 2009 to $ 1.75 last week.

The government will not be able to mop - up liquidity with bonds and there is no way they can raise short term rates as fast as I can decide to start spending my excessive savings.

The idea that real interest rates — that is, adjusted for inflation — will be lower than they have been historically is reflected in the pronouncements of policymakers such as Federal Reserve chair Janet Yellen, the medium - term forecasts of official agencies such as the Congressional Budget Office and the International Monetary Fund and the pricing of government bonds whose payments are tied to inflation.

Treasury yields fall after tepid eurozone inflation data spark German bund rally European government bonds strengthened as inflation weakensTreasury yields retreat on Thursday by falling rates in European government bonds after eurozone inflation data came in weaker than expected.

Using daily closing prices for the most liquid contract for each of 35 (6 energy, 10 commodity, 6 government bond, 6 currency exchange rate and 7 equity index) futures contract series as available during January 1987 through December 2013, he finds that: Keep Reading

, Claude Erb and Campbell Harvey re-examine the relationship between gold price and interest rates as proxied by U.S. government bond prices.

Toronto - Dominion Bank has lifted its posted rate for five - year fixed mortgages by 45 basis points to 5.59 percent as government bond yields touched their highest levels since 2011 this week.

While not the same as government bonds, a market flooded with bonds of any kind will drive up interest rates.

For three - straight years — between 2014 and 2016 — the greenback surged higher as the Fed ended «QE3,» the stimulus program that had the U.S. central bank buying as much as $ 85 billion worth of government bonds per month, and did away with the zero - interest - rate policy that was in place since the financial crisis.

The ECB's decision to start buying $ 60 billion per month of mostly government bonds in March as part of a $ 1.1 trillion QE package has helped ease credit by lowering interest rates, although the rate of improvement might seem disappointing in the short term.

Yet long - term interest rates are still remarkably low, with ten - year government bond rates at around two percent in the United States, around 0.5 percent in Germany, and around 0.2 percent in Japan as of the beginning of 2016.

Government bonds have typically been more sensitive to changes in U.S. interest rates, as they have a much higher proportion of foreign buyers and sellers from countries where local rates might be more stable or moving in the opposite direction.

Dividend stocks currently yield more than government bonds in major markets such as Canada and may remain a valuable source of income even as interest rates slowly begin to rise south of the border.

Toronto — Dominion Bank has lifted its posted rate for five - year fixed mortgages by 45 basis points to 5.59 % as government bond yields hit their highest levels since 2011.

The announcement comes as Venezuela faces acute financing problems after creditors and ratings agencies declared the government and state - run oil firm PDVSA to be in partial default for missing interest and principle payments on bonds.

Rather, the increase in spreads appears to reflect both tightness in the Commonwealth Government bond market (where supply remains limited and demand by foreign investors appears to have increased) and upward pressure on swap rates (one benchmark against which corporate bonds are priced) as companies have sought to lock in fixed - rate borrowings due to expected increases in interest rates.

Monetary policy is maintained through actions such as modifying the interest rate, buying or selling government bonds, and changing the amount of money banks are required to keep in the vault (bank reserves).

This reflects both the increasing risk of long - dated government bonds — as rates drop, duration or rate sensitivity has risen — and the fact that traditional bonds have never been more expensive.

As anticipated, the ECB held its policy rates constant with the deposit rate remaining at -0.4 % and monthly government bond purchases of $ 60bn euro, despite a slightly brighter outlook on GDP growth, which is expected to rise to 2.2 % in 2017, Mario Draghi announced during yesterday's ECB monetary policy meeting.

Using global industrial production growth as specified, annual total returns for 30 country, two regional and world stock indexes, currency spot and one - year forward exchange rates relative to the U.S. dollar, spot prices on 19 commodities, total annual returns for a global government bond index and a U.S. corporate bond index, and country inflation rates as available during 1970 through 2013, they find that: Keep Reading

Since governments tend to have AAA bond ratings - the risk is about as low as cash and so DJClayworth's answer comes into effect: Bob gives Sue cash to give to Mary.

«In stark contrast, under Mayor Lovely Warren's leadership our city has seen an unprecedented period of growth and progress with construction and investment, not only throughout downtown and our center city, but more importantly throughout our neighborhoods as well... Mayor Warren's careful fiscal stewardship has resulted in two bond rating upgrades for the City, she has brought hundreds of millions of dollars in investment by the state and federal governments along with progressive policies always focused on bringing more jobs, safer more vibrant neighborhoods and better educational opportunities to every resident of Rochester.»

Throne - Holst touted her own endorsements by Sen. Kirsten Gillibrand (D - NY) and former Rep. Tim Bishop (D - Southampton) and pointed to her record as Southampton supervisor, where she said she cut inefficient government and the town achieved a AAA bond rating.

Dividend stocks currently yield more than government bonds in major markets such as Canada and may remain a valuable source of income even as interest rates slowly begin to rise south of the border.

As for bonds, you want to own both government and high - quality corporate issues in a range of maturities (although, to protect yourself against the possibility of rising rates, you'll want to keep the average maturity of your overall holdings in the short - to intermediate - term range).

Second, both the rating - based and sovereign CDS default spreads are US dollar based and netting it out against a local currency government bond rate can be viewed as inconsistent.

This reflects both the increasing risk of long - dated government bonds — as rates drop, duration or rate sensitivity has risen — and the fact that traditional bonds have never been more expensive.

Debt funds invest in fixed income instruments such as Corporate and Government bonds, are lower - risk investment options for those looking for better interest rates than their bank's savings accounts / fixed deposits.

As interest rates began to rise from their all - time lows, however, investors began to shift from gold back into interest - bearing assets such as corporate or government - issued bondAs interest rates began to rise from their all - time lows, however, investors began to shift from gold back into interest - bearing assets such as corporate or government - issued bondas corporate or government - issued bonds.

If governments had followed a formula like «use the Long Baa bond yield for the discount rate,» they would not have been as generous with pensions.

They've also helped drive down long - term interest rates by buying up government bonds and mortgages through a strategy known as «quantitative easing,» or QE.

Pursuing income with an all - weather bond portfolioDiverse opportunities: The fund invests across all sectors of the U.S. bond market, including mortgage - backed, corporate, and government bonds.A flexible strategy: The portfolio managers pursue an attractive level of income, adjusting the portfolio to favor attractive sectors as interest rates and market conditions change.Leading research: The managers, supported by Putnam's fixed - income research division, analyze a range of bonds to build a competitive portfolio.

Bonds are subject to interest rate risk (as interest rates rise bond prices generally fall), the risk of issuer default, issuer credit risk, and inflation risk, although U.S. Treasuries are backed by the full faith and credit of the U.S. government.

As higher yields become available in safer vehicles like government bonds, CDs (although you have protection with Flex CDs), money markets, etc., and interest rates are perceived to continue upward, cash leaves high yield investments, driving the yields higher but sending the share price lower.

A decades - long trend of falling interest rates and falling inflation — and inflation expectations — seemed to have ended, as the 10 - year U.S. government bond yield broke the downward trend since 1987,» says chief strategist at Sparinvest David Bakkegaard Karsbøl in his monthly comment for February.

Government budgets however will remain in effect most likely as government bonds will remain in demand when rateGovernment budgets however will remain in effect most likely as government bonds will remain in demand when rategovernment bonds will remain in demand when rates are low.

When the Fed raises the federal funds rate, newly offered government securities, such Treasury bills and bonds, are often viewed as the safest investments and will usually experience a corresponding increase in interest rates.

Monetary policy is maintained through actions such as modifying the interest rate, buying or selling government bonds, and changing the amount of money banks are required to keep in the vault (bank reserves).

The drawback, however, is that because U.S. government bonds are regarded as the world's safest fixed - income investments, the interest rates they pay investors are lower than those of corporate bonds.

the dollar amount of all interest earned on government and corporate debt obligations and short - term certificates of deposit, as well as interest earned from cash in a brokerage account; for bond ladders it represents the estimated annual income that will be received from the securities that make up the rung; the income is calculated by multiplying the coupon rate by the quantity of bonds (face value)