Royal Bank of Canada is the first major bank to lower mortgage rates after five -
year bond yields fell following last week's surprise key rate cut by the Bank of Canada, Bloomberg is reporting.
German 10 -
year bond yields fell below zero on June 14 for the first time since the creation of the euro.
Italian 10 -
year bond yields fell 2.5 basis points (bps) to 1.754 percent while other euro zone yields were pushed higher by a sell - off in U.S. Treasuries and data suggesting the euro zone economy was not as weak as expected.
S&P futures slipped (2675), and the US 10 -
year bond yield fell from 2.97 % to 2.949 %.
The Spanish government, in turn, profited greatly from the initiative and saw its 10 -
year bond yields fall from 6.7 % in the winter of 2011 to below 5 % in early 2012.
Not exact matches
Bond yields, which move opposite price,
fell on the day, with the Fed - sensitive 2 -
year yield dipping to 2.49 percent.
Since the
bond market's «flash crash» back in October — when US 10 -
year Treasury
yields fell 34 basis points, or 0.34 % in one morning — concerns regarding liquidity and how resilient the
bond market might be to shocks have lingered around the market.
In the
bond market, the 10 -
year US Treasury
yield fell less than 1 basis point, to 2.79 %, near the key 3 % level that traders are closely watching.
Their declining currencies against the dollar (8 - 9 percent over the past 12 months),
falling stock market values since the beginning of the
year and high (India) and rising (Brazil)
bond yields are reflecting their funding difficulties.
Concerns over the French presidential election seemed to have eased slightly on Monday with the
yields on the 10 -
year French
bond falling.
Rates on government
bonds in Germany and Switzerland
fell further into negative territory after Brexit, while
yields on 10 -
year Treasuries dropped below 1.5 % and touched record lows.
Bond prices
fell, sending the
yield on the U.S. 10 -
year Treasury note to its highest level in four
years, following newly released minutes from the U.S. Federal suggesting bullish sentiment among policy - makers and signalling more interest rate hikes ahead.
This
year's budget provides a sensitivity analysis for
yields on 10 -
year bonds; should interest rates
fall in line with the BMO projections, the Ontario government will see estimated gains of $ 400 million next
year alone.
The benchmark 10 -
year Treasury note
yield TMUBMUSD10Y, -0.75 %
fell 2 basis points to 2.814 %, while the 30 -
year bond yield TMUBMUSD30Y, -0.77 % slipped 3.3 basis points to 2.998 %, its third straight decline.
The 10 -
year German government
bond yield TMBMKDE - 10Y, -8.48 %
fell 1.4 basis points to 0.509 %, according to Tradeweb data.
For the first time ever, Switzerland's entire stock of
bonds has
fallen below zero, with the 50 -
year yield plummeting to negative 0.03 percent on July 5.
Looking forward, even if you assume
bond yields settle down, probably somewhere in last
fall's range of 2.2 % to 2.6 % for the 10 -
year Treasury note, this moderate
year - to - date rise is still likely to inflict significant damage on parts of the market.
The
yield on the current 30 -
year bond fell less than one basis point to 3.37 percent.
Treasury
bond prices rallied and
yields on the 10 -
year fell to between 2.8 % and 2.85 % following the release of benign inflation data and weaker - than - expected retail sales figures.
Real
bond returns have been high over the past 30
years or so because nominal starting
yields were high and inflation has
fallen.
Meanwhile, the
yield on Switzerland's 50 -
year government
bond fell below zero for the first time on Tuesday, according to Reuters.
Bond yields have actually been
falling since July 1, 1981 when the 10 -
year yield was at 15.84 %.
On 15 October, the
yield on 10 -
year US Treasury
bonds fell almost 37 basis points (Graph 2, left - hand panel), more than the drop on 15 September 2008 when Lehman Brothers filed for bankruptcy.
This initiated a further decline in 10 -
year government
bond yields, which
fell to all - time lows for nine large euro area countries including France, Ireland and Spain by 26 November, the end of the period under review (Graph 5, right - hand panel).
In fact, the 10 -
year Chinese government
bond yield fell following the major announcements (Graph B, right - hand panel).
The
yield on the 2 -
year bond fell 313 basis points to 21.2 percent at 3:22 p.m. in Athens.
From around 5.4 per cent at the time of the previous Statement,
yields on 10 -
year bonds fell to a low of 5.1 per cent in mid December, but have since risen back to near 5.4 per cent.
In Europe, the
yield for the 10 -
year German
bond TMBMKDE - 10Y, +1.25 % also known as bunds,
fell sharply by 5.2 basis points to 0.527 %, according to Tradeweb data.
Over the last few
years stocks have risen and
bond yields have
fallen (their prices have risen).
Yields on 10 -
year bonds fell by around 40 basis points, to 5.3 per cent, by early March but are now around 5.9 per cent — a net rise of 25 basis points since the time of the last Statement.
The
yield on the German 10 -
year bond has
fallen from around 5.45 per cent to 5.20 per cent.
U.S. government
bond yields and the dollar rose, while U.S. stocks
fell on Sept. 20 after the Federal Reserve signalled it still expects to increase interest rates one more time by the end of the
year despite a recent bout of low inflation.
The 10 -
year Treasury note
yield TMUBMUSD10Y, -0.18 %
fell 1.9 basis points to 2.946 %, while the 30 -
year bond yield TMUBMUSD30Y, -0.33 % shed 1.1 basis points to 3.123 %.
Bonds were also on the move, with
yields pressing higher after
falling on Monday, with the 2 -
year yield hitting 2.26 % and the 10 -
year yield rising to 2.89 %.
New Zealand
bonds close higher after U.S. 10 -
year Note
yield falls below 3 pct mark; market awaits Q1 employment report
Suppose that over the first 10
years of your holding period, interest rates decline, and the
yield - to - maturity on your
bond falls to 7 %.
The
yield on the 10 -
year US Treasury
bond fell 2.9 % this week to 2.34 %, as of early Friday morning.
Longer - term rates are
falling too: The
yield on five -
year government
bonds has
fallen from 1.9 per cent to 1.72 per cent in the past 10 days.
Last week,
bond yields fell and prices rose, with 10 -
year U.S. Treasury
yields hitting a one - month low of 2.1 %.
For the first time ever, Germany's 10 -
year government
bond yield recently
fell below zero, joining negative government debt issued by Japan, Switzerland and other countries.
The narrative of higher rates being a headwind for gold seems to be
falling apart, as the 10
year yield in the US seems to be on an upswing, and gold is rallying at the same time that
bond values
fall.
This return also
falls below what seven -
year Treasury
bonds were
yielding at the time, which was 6.1 percent.
It doesn't help that 10 -
year bond yields are still lower than the prospective operating earnings
yield on the S&P 500 (the «Fed Model»), not only because the model is built on an omitted variables bias (see the August 22 2005 comment), but also because the model statistically underperforms a simpler rule that says «get in when stock
yields are high and interest rates are
falling, and get out when the reverse is true.»
The
fall in
bond yields over the past
year, combined with an unchanged target cash rate, has seen a flattening of the
yield curve.
Treasury
bond prices
fell Thursday, pushing the
yield on 10 -
year notes to 3 %, a threshold that may signal a new baseline for higher interest rates.
The
yield on the US 10 -
year bond fell overnight to 2.935 %, while the DX moved down to 92.36.
After being relatively stable at around 4 per cent over April, US
yields on 10 -
year treasury
bonds fell to 3.1 per cent by mid June (Graph 9).
The
yield on the benchmark 10 -
year OFZ rose as high as 7.32 percent on Monday as the price of the
bond fell.
Growth in U.S. real GDP would
fall 2.7 % over the three
years that follow a vote, with a corresponding decline of 13.1 % in U.S. equities and a contraction of 0.53 % on the
yields in U.S. corporate
bonds.
Bond yields in Japan
fell to 1.125 per cent, equal to the lowest recorded by historians in the past 4,000
years, and well below the level of 1.75 per cent reached by US
bonds in the Great Depression (Graph 2).