Not exact matches
«Over the last 15
years, the difference between the five
year government bond yield and the overnight Bank of Canada rate has been a reliable indicator of the
trend growth in the Canadian economy.
This second
trend borne from ultra-loose monetary policy has forced many investors to seek out higher - yielding alternatives including dividend stocks, which, on average, yield more than 10 -
year government bonds in most major developed markets, including Canada (see chart below).
A decades - long
trend of falling interest rates and falling inflation — and inflation expectations — seemed to have ended, as the 10 -
year U.S.
government bond yield broke the downward
trend since 1987,» says chief strategist at Sparinvest David Bakkegaard Karsbøl in his monthly comment for February.
No doubt, the slope of the yield curve, as measured by the spread between two - and 10 -
year government bonds, has been flattening since 2014 in both Canada and the United States, and the
trend has recently intensified: as we headed into December, the curve sat at its flattest level since the Great Recession.
However... demographic
trends and financial repression (the need for
governments to maintain a supply of coerced purchasers of their
bonds) suggest that developed market equities won't be a great investment class for the next ten
years or so.