Sentences with phrase «real yields 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.

Not exact matches

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.

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

By taking a deeper look; we can break apart the total yield on the US government 30 year bond (Chart: light blue data) into its two parts: (1) the market's estimate of the inflation rate (Chart: green data) and (2) the resulting «real» (after inflation) rate of interest (Chart: dark blue data).

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

Mihir Worah, PIMCO's CIO of asset allocation and real return, discusses what kind of government bonds look most attractive and where the firm is concentrating investments on the yield curve in 2018.

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.

In addition, yields on real estate investments are substantially higher than yields on the benchmark government bonds.