Sentences with phrase «when yields rise»

Conversely, when yields rise, so do mortgage rates.

When their yields rise or fall, it is a sign that financing rates for corporations are changing.

Not only do bond prices fall when yields rise but, when yields are high, taxes and inflation can turn profits into losses in the blink of an eye.

Conversely, when yields rise, so do mortgage rates.

When yields rise, the value of bonds (and bond fund shares) fall.

As they do this, the yield on long term treasuries will rise and when the yield rises, so will long term mortgage interest rates.

While this sounds good for savers — interest rates could rise — it is bad news for the holders of government bonds, which fall in value when the yield rises.

Not exact matches

Typically, yields climb when inflation expectation rise.

When bond yields rise, the market price to purchase or sell those bonds falls.

It's the total earnings - per - share the market generates as a percent of the market's total value — a measure similar to the yield on bonds, where the yield rises when bond prices fall, and vice versa.

When bond yields rise, investors often start weighing whether stocks are the only game in town for return.

«Gold really suffers when yield rates start to rise, because gold offers no carry whatsoever,» said Schlossberg.

The report said that equities have only come under pressure when the two - year Treasury yield rose above 3.5 percent.

After weakening at the start of 2018, a rise in U.S. Treasury yields have helped the dollar stage a recovery in the past fortnight at the same time as doubts grow about when the European Central Bank (ECB) will tighten monetary policy.

As a result, bonds, which rise in price when yields drop, had a very good year in 2014.

When rates rise, the price of older, lower - yielding bonds fall.

Lower yields and longer maturities present greater risk when interest rates are on the rise.

A flatter curve, when the 2 - year yield for instance, rises closer to the 10 - year, could signal a weakening economy in the future.

Bond yields drop when prices rise.

When rates rise, bonds drop in value because fixed income buyers prefer investing in new bonds with higher yields.

When the yield on the S&P 500 was higher than that for the 10 - year, however, stocks rose an average 19 percent and gained in price about 80 percent of the time,» he wrote.

Cash yields are much lower today than they were back then so it's not exactly the same environment but if / when rates do eventually rise cash will actually be a decent holding.

When short - term yields rise faster than long - term yields, the yield curve is said to be «flattening.»

When interest rates rise, they can become a challenge for stocks because they offer higher yielding investment alternatives and also make for higher borrowing costs for corporations.

The economics of the Voya deal seem even better now than on Dec. 21 when the transaction was announced given the rise in bond yields, Belardi told Wall Street analysts.

High - dividend stocks such as utilities and phone companies fell; those stocks are often compared to bonds and they tend to fall when bond yields rise, as higher bond yields make the stocks less appealing to investors seeking income.

If this doesn't underscore that longer - term bond yields don't have to rise when the Fed hikes rates, we're not sure what would.

Similarly, when interest rates fall, the price will rise to reduce the yield and once again make it market competitive.

After rising to roughly 2.60 % in early March — when consumer confidence was near its recent zenith — 10 - year Treasury yields fell to around 2.15 % by mid-June.

Banks make floating rate loans to companies that are financially troubled, and the yields adjust up frequently when interest rates are rising.

The past seven U.S. recessions were directly preceded by an inverted yield curve — that is, when short - term yields rose above long - term yields.

Market movements were particularly sharp during a 20 - minute window when yields slipped and then rose by around 20 basis points (Graph 2, centre panel).

Those are what you want when markets falter, but they have extremely low yields today and typically are very sensitive to rising rates.

«When the [Treasury] yield is below 2.50 %, it doesn't take much of either an inflation scare or something else — but it would most likely be an inflation scare — to make rates rise.

At this point, it's human nature to say — as I've often heard from clients over the last 39 years, whenever short rates rise above long rates — why buy a 20 - year bond when I get a higher yield on a 2 - year piece of paper?

Short duration bond strategies tend to have lower yields than long duration bond strategies, but when interest rates rise, short duration strategies will experience a smaller price drop.

So with the more price stable gilts of short or medium term we are looking at a negative real yield with a potential capital loss when one day rates rise.

The recent widening of this spread is, of course, much smaller than was seen in 1994 in the previous episode of globally rising bond yields, when the yield on 10 - year bonds in Australia moved from 1 percentage point to about 3 percentage points above the comparable US yield.

When stock prices fall, dividend yields rise unless the company has to reduce its quarterly payouts.

When the yields on the 10 - Year US Treasury Note rise, it indicates that the demand for the American securities falls, Grachev explains.

With the 10 - year yielding above 1.5 %, one has to question that yield return relative to the risk that investors will face when rates rise.

Stocks with a history of consistently growing their dividends have historically tended to perform well and exhibit less volatility in a rising rate environment, while high yielding dividends, often considered «bond - like proxies,» have tended to be more vulnerable (due to their high debt levels) and have historically followed bond performance when rates rise.

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.

Although decades of history have conclusively proved it is more profitable to be an owner of corporate America (viz., stocks), rather than a lender to it (viz., bonds), there are times when equities are unattractive compared to other asset classes (think late - 1999 when stock prices had risen so high the earnings yields were almost non-existent) or they do not fit with the particular goals or needs of the portfolio owner.

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.

We prefer value stocks, those that look relatively cheap on metrics such as book value and tend to perform well when bond yields rise.

And when Fed funds are rising, the opposite happens — funding rates for those clipping interest spreads rise, and the expectation of further rises gets built in, leading some to exit their trades into longer and riskier debts, which makes those yields rise as well, with uncertain timing, but eventually it happens.

When downgrades occur, the yields of fallen angels tend to rise dramatically while their prices decline.

However, with yields rising and economic growth at least stabilizing, this began to change in the second half of 2016 when classic dividend plays stumbled while value started to come back into vogue.

As a rule, the most dangerous conditions for stocks are always when stock yields are low (stock valuations are high) and competing yields (primarily interest rates) are rising.