(The two -
year Treasury bond now yields 2.25 percent.)
Not exact matches
Pimco, one of the world's largest
bond fund managers, and widely followed Guggenheim Partners are among the investors who say benchmark 10 -
year Treasuries yielding 3 percent -
now within reach - are too hard to resist.
The world's biggest wealth fund is for
now sticking to an overweight position in the shorter
bond maturities as the U.S. 10 -
year Treasury yield has broken through the 3 percent threshold for the first time since 2014.
That's what to watch for
now - things like the difference between commercial paper yields and
Treasury bills, the difference between Moody's BAA and AAA yields, the difference between the Dow Jones Corporate
Bond Index yield and 10 -
year Treasury yields, and so forth.
Yields moved lower as the yield - to - worst of the S&P / BGCantor Current 10
Year U.S.
Treasury Bond Index is
now at a 2.49 % which brings it back down to level Read more -LSB-...]
For
now, the Strategic Total Return Fund continues to carry a limited duration of about 2
years (meaning that a 100 basis point move in interest rates would be expected to impact the Fund by about 2 % on the basis of
bond price fluctuations), mostly in
Treasury Inflation Protected Securities.
Given that
Treasury yields broke through levels that have been a fairly reliable barrier for several
years now, it wouldn't be surprising to see
bonds stage a «relief rally» here, but both yields and market action remain unfavorable overall, holding the Strategic Total Return Fund to a roughly 2 -
year duration, primarily in
Treasury inflation - protected securities.
-LRB-...) despite this, investors remain entirely enamored with stocks and, as the following chart shows,
Treasury Bond sentiment
now stands at 20 -
year extremes of bearishness.
I'll give you one practical upshot for
now, if you are an institutional
bond investor: go long 10 -
year Treasuries and short 7 -
year.
Significantly, the yield on the S&P 500
now exceeds that of the 10 -
year U.S.
Treasury bond — a relationship last seen in approximately 1958.
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 %.
Now ask yourself this question: Would you be willing to pay full price for a 30 -
year Treasury bond with an 8 % coupon rate?
One more historical comparison worth pondering: the dividend yield on the S&P 500 is
now safely above the yield on 30 -
year Treasury bonds.
Yields for two and ten
year treasuries as well as for high grade
bonds are at five
year highs right
now.
Last week's performance saw the overall
Treasury market as measured by the S&P / BGCantor US
Treasury Bond Index return 0.03 % and is
now at 2.08 % for the
year.
Yields moved lower as the yield - to - worst of the S&P / BGCantor Current 10
Year U.S.
Treasury Bond Index is
now at a 2.49 % which brings it back down to level Read more -LSB-...]
With the Fed
now hiking, the bellwether 10 -
year Treasury note yield has risen from 1.4 % in mid 2016 to nearly 3 % recently, lifting yields on other high - quality
bonds.
Now, the
Treasury won't do this, but my guess is that there is even more demand for a 50 -
year, or even a century
bond (100
years).
Yields moved lower as the yield - to - worst of the S&P / BGCantor Current 10
Year U.S.
Treasury Bond Index is
now at a 2.49 % which brings it back down to level seen at the end of May.
For this investment, we purchase a 10 -
year US
Treasury, hold it for one
year, at which point we sell the
now 9 -
year bond to purchase a new 10 -
year bond.
Taxable
Bonds —
Treasury yields were mixed this week, with the 2 -
year Treasury increasing by 2 bps to
now yield 2.50 %.
Has anyone prepared a summary of US
Treasury bonds, say five
years ago and
now and looked at average maturity, etc..
Taxable
Bonds —
Treasury yields were all up again this week, with the 2 -
year Treasury increasing by 9 bps and
now yielding 2.46 %.