Sentences with phrase «term bond rates»

If you believe long term bond rates will rise, TBT could be a good choice:

Given the way interest rates are tied to long - term bond rates in the U.S. — rates the U.S. Federal Reserve has been saying are about to increase — there is no way to be sure that our rates won't increase again.

This has contributed to the Fed's cautious pace of interest rate hikes and helped to keep longer - term bond rates from rising.

The targets for the federal funds rate affect short - term interest rates, but the mortgage market is influenced far more by long - term bond rates.

With money market rates close to 0 %, short - term bond rates between 0.3 % (treasuries) and 1.75 % (investment grade), and intermediate - term bond rates between 1.3 % (treasuries) and 3.1 % (investment grade), the PenFed 7 - year CD rate of 3.5 % is very good.

That should result in long - term bond rates returning to more normal levels.

Long - term bond rates have risen about one percentage point since then, and that has caused bond values to fall.

Dr. Mahamudu Bawumia, running mate to the opposition New Patriotic Party's (NPP) Flagbearer, Nana Akufo - Addo, has accused President John Mahama of misleading Ghanaian's for giving the impression that, International Credit Ratings Agency, Moody's, revised outlook on Ghana's Long Term Bond Ratings from Negative to Stable, is an upgrade.

Not exact matches

That data raised a fresh round of questions about how the Federal Reserve will proceed on further cutting back on its massive monthly bond purchases, which have kept long - term rates low and encouraged a strong rally on equity markets.

But longer term, rising rates will be bad for stocks; therefore, investors may want to evaluate their portfolios and move out of some equities and invest more in bonds, she said.

But, «the U.S. and the Bank of England have gone to more extremes because they have interest rates below the Bank of Canada's, and they've also been buying bonds to lower longer term interest rates,» Shenfeld added.

Still, combine the indications of the short - term bond market with today's 5 % GDP news and you get the sense that stock traders betting on low interest rates for longer periods of time may soon have to bail out.

The caveat with this method is that bonds and annuities typically come with long - term interest rates, and from a wealth perspective, that's more dangerous than short - term ones.

Others have noted that if the Fed continues raising short - term rates while long - term rates remain stalled, it could turn the shape of the bond yield curve upside down, a typical signal of recession.

The restructuring can be relatively gentle, such as a cut in rate, stretch - out of term, and the loss paid in some form of equity participation bonds in the future growth of the countries.

Alternatively, it's best to shorten the average term to maturity of your bond portfolio as interest rates enter into a rising cycle, because the shorter the term, the less their price will be affected.

So, putting the two together, we want to own short - term high - coupon bonds when rates are rising, and low - coupon long - term bonds when rates are trending down.

We believe that long - term tax - free municipal bonds that offer near - 4 % yields (a 6.62 % taxable equivalent at today's top rate and 6.15 % even at the new proposed top rate of 35 %) still offer superior value.

To explain this concept a bit further, we already know that the longer a bond's term to maturity, the more sensitive its price is to changes in interest rates.

Long - term interest rates could rise abruptly, as bond prices fall.

U.S. long - term rates would spike, while investors in Canada would rush to the domestic fixed - income market, setting off a bond rally that would push Canadian yields down «substantially,» said Burleton.

And corporations have spent the last decade issuing longer - term bonds to take advantage of low interest rates.

And with a strong - enough economy spurring the Federal Reserve to raise short - term interest rates, bond investors may need to reduce expectations.

The simplified explanation for this aberrant investing disaster was a dramatic rise in interest rates during the period: Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in rates during the period: Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in 1981.

Funds that own high - quality bonds with shorter durations, such as Fidelity Short - Term Bond, can help reduce your portfolio's sensitivity to rising rates.

While U.S. savings bonds have lost popularity as a means of long - term savings due to the low interest rates they currently earn, some retirees have been holding on to bonds that were issued when rates were higher.

Already, the bond yield curve, which measures the difference between short - term interest rates and long one, has been rising.

Neither argument holds right now for holding any tactical cash, especially with no reasonable prospects for a near - term rate increase and the yield differential offered by bonds over cash right now.

This tool uses the present value of bond portfolios, adjusted for interest rate and inflation expectations, to show current retirees how much in retirement savings they need today to account for every $ 1 they need in the future, assuming they hold a portfolio made up entirely of investment - grade bonds and longer - term Treasurys.

The Fed had lowered interest rates down to zero in terms of short - term rates and that pushed bond yields down.

Obvious possibilities include bank certificates of deposit, zero - coupon bonds (especially good for college - tuition savings), short - to medium - term government bonds, and top - rated corporate bonds.

Although the retailers have been negotiating with bond holders, who have accepted significant discounts and offered longer terms, the basic financials are enough for Moody's to rate 13.5 percent of the retailers it follows as a Ca or Caa credit risk.

By secular reflation, we mean at least a decade in which short - and long - term interest rates stay habitually below nominal GDP growth and high grade bonds are not really bonds any more: delivering trend returns that are close to zero or even negative.

Residential real estate had taken on a healthy pace in late 2012 and early 2013 but has slowed since the Federal Reserve started talking about reducing its monthly bond purchase, which helps keep long - term interest rates low.

Yield to maturity is considered a long - term bond yield, but is expressed as an annual rate.

The risk - free interest rate approximates the yield on benchmark Government of Canada bonds for terms similar to the contract life of the options.

But long - term rates on mortgages and some other loans have jumped since May, when Bernanke first said the Fed might slow its bond buys later this year.

In our terms, there are value investors for Treasuries 10: There are lots of natural buyers and sellers of interest rates, and if Treasury bonds crash dramatically someone will step in to buy them.

Many funds companies, including Vanguard and Fidelity, offer short - term bond funds that will likely outperform during a rising interest - rate period.

Progress in a few areas has been solid: slashing of bureaucratic red tape has led to a surge in new private businesses; full liberalization of interest rates seems likely following the introduction of bank deposit insurance in May; Rmb 2 trillion (US$ 325 billion) of local government debt is being sensibly restructured into long - term bonds; tighter environmental regulation and more stringent resource taxes have contributed to a surprising two - year decline in China's consumption of coal.

Interest rate expectations are constantly changing over the short - term but over longer periods bond returns are more or less based on math.

The biggest disadvantage of buying a Treasury bond is that the interest rate could rise during its term, which means your money might be tied up in an investment that pays 2.75 percent interest when you could be getting 4 percent or 5 percent — or more.

But that relationship has been tested over the life of this bond bull market that saw double digit interest rates fall over the past 30 + years, boosting the performance of long - term bonds.

Let me remind you that monetary policy operates with a long lag and there are many transmission channels through which interest rate changes affect the economy, including longer - term bond yields and the exchange rate.

For bond investors with a short - term investment horizon, it is absolutely critical to think about rising interest rates.

As Russ Koesterich points out, cash typically produces lower returns than stocks or bonds, and once you invest for both inflation and taxes, average long - term rates are negative.

Treasury bond rates remain the same over the 30 - year term of the bond.

Yes, cheap money polices did help stabilize a reeling housing sector, that shouldn't be dismissed, but what else does the Fed have to show for near - zero short term interest rates and the fortune spent lowering longer term rates through its bond buying program?

The other provinces would have access to Canada Pension Plan surpluses, in proportion to the contributions made by their residents, through the sale of provincial bonds and provincially guaranteed securities on 20 year terms at the long - term federal bond rate.

So while there could be one or even five year periods where longer maturity bonds perform fairly well from these yield levels, over the long - term they're likely to be a poor investment in terms of earning a decent return over the rate of inflation.