Sentences with phrase «up yield curve»

So, it's not very surprising that Claymore's two newest ETFs are similar products moving up the yield curve.

Not exact matches

Silverstein: Will we end up with an inverted yield curve, and is that something that you're worried about?
It only keeled over when the Fed was deliberately trying to slow down the economy and had jacked up its rates until they surpassed long - term rates (inversion in the yield curve).
He says financial conditions are easy, stocks are up, the yield curve is relatively steep, and economic indicators are looking solid — all factors he sees resisting a recession.
That has to be funded,» and will likely push up long rates and steepen the yield curve, Evans said.
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.
The drop in yields in the «long end» of the curve this year has raised concerns that in winding down stimulus too soon, the Fed is giving up on its goal of reflating the economy.
But the bank has taken more extreme measures, such as ramping up purchases to more than 40 percent of the market overall and saying it would control the yield curve by keeping the 10 - year government bond yield around 0 percent.
But we've still got a flat yield curve and will eventually go up.
Usually, you pick up yield by movin» out the yield curve.
Federal reserve will not notch them rates until next year (this is consensus, i think), additionally they are only targeting short term rates, not long term rates, we could end up with a flatter yield curve, meaning short term rates equal long term rates.
He covers the whole yield curve, from one year out to the longest bond available (useful info in itself, which varies from under 20 up to 40 years).
We believe a step - up in risk aversion has led to a structural rise in precautionary savings, further dragging down bond yields across the curve — a trend that won't quickly change, as we write in our Global macro outlook The safety premium driving low rates.
On the short - side of the yield curve, the consensus seems to interpret the Federal Open Market Committee's recent use of the word «gradual» as an indication that it will allow inflation to run higher than 2 % in order to make up for the last 20 years of below - target growth.
With lower demand for shorter - term securities, their yields actually go up, giving rise to an inverted yield curve when yields on longer - term securities have come down at the same time.
Canadian government bond prices were higher across the yield curve, with the two - year up 7 cents to yield 1.499 per cent and the 10 - year rising 32 cents to yield 1.855 per cent.
When yields go up — especially now that the yield curve is flattening — this intensifies monetary restraint, which puts downward pressure on commodities.
Getting long the yield curve has definitely been a popular trade with the Connecticut / Mayfair sect, and unfortunately, I have been swept up into this group - think.
The program has picked up pace since then and is being supported by novel features, such as «yield curve control» and «inflation overshooting commitment».
Real estate yields remain compressed, pushing many investors to look higher up the risk curve for good returns.
With a normal yield curve, bond buyers essentially demand a higher rate of interest in order to lend money for 30 years than they will to loan money for 30 days since they will be locking up their money for a longer period of time.
The temptation to «ride the yield curve» must be great, and there is indeed evidence that banks have begun to load up on treasury debt (they must do something after all, and the private sector is out at the moment).
Between the rear lamps, there's a new curved bar of bright work, downturned and framing the taillights — yielding a «maximized» taillight appearance, as Toyota puts it — and functionally, all models now include a rear back - up camera that's located in the license - plate area.
The chart below shows the average 12 - month returns in some of the industries that make up the MSCI World Index - including Materials, Energy, Industrials, Consumer Discretionary, and Consumer Staples - subsequent to different shapes of the global yield curve.
In contrast, consumer staple stocks have held up relatively well following yield curve inversions.
During earnings season, investors worried about the impact of a flattening yield curve on small cap banks, which make up roughly 25 percent of the Russell 2000, according to Bloomberg data.
I divided both up by quintiles, reasoning that an investor focused on momentum and the yield curve would have enough data from history prior to 1972 to generalize what would be favorable and unfavorable conditions for investment.
This means that the U.S. stock market is going up while the yield curve flattens!
13) The yield curve and Fed funds futures indicate another 25 - 50 basis points of easing in this cycle, at least, until the next institution blows up.
This means the government is financing itself at close to zero cost for its short term borrowing and, further out on the curve, the cost of financing does not go up by much; as the yield - to - worst on the S&P / BGCantor 7 - 10 Year U.S. Treasury Bond Index is now at 1.48 %.
From a sector perspective, energy, materials and financials make up more than a third of the MSCI Europe Index.2 Many of these companies tend do well when inflation is rising and bond yields are rising because typically inflation nudges up commodity prices and financial companies tend to profit when the yield curve steepens.
Normal curves exists for long durations, while an inverted yield curve is rare and may not show up for decades.
Right now the premium on AAA corporate and the like is so low that I wouldn't recommend picking them up, but when the yield curve eventually becomes a curve again, you can find good risk - adjusted returns in corporate bonds (providing you're holding to maturity).
This is the slope of the yield curve, and it's the world's largest barometer of the expectations of US economic growth (Pop Up: The Yield Curve: a multi-talented indicayield curve, and it's the world's largest barometer of the expectations of US economic growth (Pop Up: The Yield Curve: a multi-talented indicacurve, and it's the world's largest barometer of the expectations of US economic growth (Pop Up: The Yield Curve: a multi-talented indicaYield Curve: a multi-talented indicaCurve: a multi-talented indicator).
When the media talks about rising interest rates, too often investors presume that rates all along the yield curve will rise by the same amount - the curve will move up in parallel.
The curve of that line is constantly changing, but you can often pick up yield by extending the maturity of your investments, assuming the yield curve is sloping upward.
With lower demand for shorter - term securities, their yields actually go up, giving rise to an inverted yield curve when yields on longer - term securities have come down at the same time.
In other words, when the high - yield and emerging bond market is in distress, VIX goes up and the VIX futures curve flips from contango to backwardation, which causes VIX futures to move even further in the opposite direction of the high - yield and emerging market bonds.
The 5 year range of the municipal bond curve is keeping up with the overall market as the 5 year S&P AMT - Free Muni Series 2018 Index has returned 1.14 %, while longer municipal bonds in the S&P Municipal Bond 20 + year Index have recorded a total return of 2.14 % year to date with yields remaining steady over the course of the week.
Euribor — December 2010 Comment: The German Treasury yield curve is terribly steep as other maturities can not keep up with Schatz yields which have dropped to a new record low at 0.958 %; yesterdayâ $ ™ s auction carried a coupon of 1.00 %, the lowest ever and the ECBâ $ ™ s target rate.
Though in the long run investors in First Marblehead will likely make money, the short run may end up being very rocky with potential cancellations on the horizon and a flat yield curve.
It has absolutely depressed rates on the long - end of the yield curve, which makes it cheaper for businesses, individuals, and governments to borrow for periods of up to 30 years.
Shorter duration, high - yield bonds, such as those captured in the S&P 0 - 3 Year High Yield Corporate Bond Index, are up 0.09 % MTD and 1.85 % YTD (as of March 13, 2015), as investors move down the curve in order to reduce rate volatility and term risk expoyield bonds, such as those captured in the S&P 0 - 3 Year High Yield Corporate Bond Index, are up 0.09 % MTD and 1.85 % YTD (as of March 13, 2015), as investors move down the curve in order to reduce rate volatility and term risk expoYield Corporate Bond Index, are up 0.09 % MTD and 1.85 % YTD (as of March 13, 2015), as investors move down the curve in order to reduce rate volatility and term risk exposure.
In this follow up note, we focus our attention on the shape of the yield curve and returns over various tightening cycles.
A normal or up - sloped yield curve indicates yields on longer - term bonds may continue to rise, responding to periods of economic expansion.
The increasing temporary demand for shorter - term securities pushes their yields even lower, setting in motion a steeper up - sloped normal yield curve.
Depending on the shape of the prevailing SGS yield curve, there may be certain occasions where the reference SGS yields do not allow a particular Savings Bond issue to have a monotonically increasing step - up interest feature (i.e. the implied coupon rates based on the reference SGS yields may decrease over part or all of the issue's tenor).
Bonds in general had an uneventful June but we just saw longer - term bonds go up in price (yields down) while shorter - term bond prices fell as the yield curve flattened out.
Longer - term bonds were the best debt performers with Vanguard Long - Term Bond Index ETF (BLV) gaining 0.89 %, even with rates creeping up on the short - to mid-range of the yield curve (where most investors are).
Unless the long end of the yield curve reprices up in yield, there is no way those higher Fed funds rates will happen.
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