As the 10 -
year yield began to really break out last week, the focus was also on the yield curve that had been getting flatter and flatter to a 2007 low.
Not exact matches
On Wednesday afternoon, the benchmark U.S. 10 -
year bond was
yielding 2.35 per cent, up 15 basis points from before the Fed statement and up sharply from about 1.6 per cent at the
beginning of May.
In a
year marked by a significant milestone for rising interest rates (the 10 -
year Treasury note
yield topping 3 percent), an unusual winner has
begun to emerge in the stock market: utility stocks.
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.
Since bottoming below zero (an «inverted»
yield curve) back at the
beginning of this
year, the combination of higher five
year yields and BoC rate cuts have sent this
yield spread higher.
Although the
yield of a 10 -
year U.S. Treasury bond has risen recently to around 2.50 % — that's not too far from where it was at the
beginning of 2017 (source: Bloomberg, as of 1/10/2018).
(The 10 stocks
began the
year with an average
yield of 3.6 %.)
However, the reaction of the bond market is another story altogether, with
yields on 10 -
year Treasuries recently returning to about where they were when this
year began.
We sold some small caps at the
beginning of the
year and some high - dividend
yield growth funds during the summer.
Very quickly those gains reversed and as the trading day
began to unfold, we saw the 10 -
year Treasury note
yield rise above 2 %, approximately 20 basis points wider than where it was trading just a few days ago.1
Yields on 10 -
year US Treasuries rose close to 2.4 % after the release of May nonfarm payroll figures in early June, compared with under 1.9 % at the
beginning of May and 1.6 % in January.
Although US Treasuries have been sliding since the
beginning of the
year, the uncertainty and volatility that we have seen in the past few weeks have pushed
yields back down, forcing 10 -
year Treasuries to close last week at 2.77 % — a level far away from the psychological 3 % level many have been waiting for.
While the USD aggregate
yield for USD credits has risen to 4.95 % from 4.53 % on January 2, the OAS is trading only one bps wider compared to the
beginning of the
year despite fluctuations.
Although the past few weeks have seen the 10 -
year Treasury
yield hold stable around 2.9 %, US Treasury
yields have risen by approximately 45 basis points since the
beginning of the
year.
Medium - term inflation expectations of financial market participants, as implied by the difference between nominal and indexed bond
yields, have risen to around 3 per cent in October, from less than 2 per cent at the
beginning of the
year.
However, in the past
year, as the Federal Reserve raised interest rates three times, money market
yields have
begun to inch up.
As a result, bond
yields have risen in recent months, with the rise accelerating since the
beginning of the
year.
Since then benchmark Treasury
yields, generally thought at the
beginning of the
year to move higher, decided to fall instead.
This chart shows that the US 2 -
year T - Note
yield began trending upward in 2011 — more than 6
years ago and more than 4
years prior to the Fed's first rate hike.
The fall in oil prices that culminated in big declines for stocks, emerging market assets and high
yield bonds at the
beginning of this
year is the most recent manifestation of this linkage.
At the long end of the
yield curve, sentiment
began to improve noticeably a
year ago, reflecting the decline in the Budget deficit and the improvement in inflation.
German 10 -
year government bond
yields have fallen to 0.14 percent from 0.63 percent at the
beginning of the
year.
Indeed, with the US Federal Reserve finally
beginning to hike interest rates and half of all European government bonds of less than five -
year maturity paying negative
yields, it would appear to us that the rate cycle is bottoming.
Thomson Reuters reports that the volume of high -
yield corporate debt reached $ 389 billion in 2012, an increase of 38 % from 2011 and the strongest
year since records
began in 1980.
«Indeed, our efforts at restoring business confidence are
beginning to
yield positive results, as confirmed by the AGI Business Barometer, showing a consistent rise in business confidence throughout this
year.
There is evidence from Canada and Argentina that initially
yields increased with GM and pesticide use fell.However, Charles Benbrook, an independent US scientist formerly of the US Department of Agriculture, carried out a series of systematic studies that showed that over a five -
year period,
yields began to fall and pesticide use markedly increased to counter the proliferation of volunteers and superweeds.
'' This is the
beginning of the united effort of exerting final pressure to extricate ourselves from over 50
years span of un-established union with Ghana which has not
yielded any benefits — social, economic and financial security to the common people of the land,» Mr Kudjordjie stated.
The one - house statements of priorities in the Democrat - controlled Assembly and Republican - controlled Senate will be passed this week, and their passage signals the official start to the negotiations that will
yield a state spending plan for the new fiscal
year, which
begins April 1.
But over the past several
years, discoveries have
begun to
yield some tantalizing clues about the end of the Ediacaran.
Ten thousand
years ago, at the dawn of the Neolithic era, the agricultural revolution
began to
yield vastly larger amounts of food from cultivated crops and livestock, allowing rapid growth in human populations.
Within two decades they
began to understand their folly: During many
years as little as 12 million acre - feet flowed, and under normal conditions the river would rarely
yield close to the amount of water expected.
The U of I team
began developing the tomato cultures that would
yield heavier, traceable carbon molecules about 10
years ago.
Once the warming that had been going on for millions of
years reached a threshold and that permafrost
began to thaw, decomposing organic matter
yielded 1.2 trillion tons of carbon as carbon dioxide and methane.
It takes 8 - 10
years for them to reach mature size; however, they will
begin to bear fruit after two to three
years and better
yields after five
years.
If the abundance of agriculture may be too much for some tastes, the film subtly reveals how farming methods grew increasingly industrialized over the
years: Just as the armies of the Great War employed modern weapons like tanks and airplanes for the first time, so the Paridiers
begin to use combines and tractors to
yield more crops with less labor.
In typical fashion, this
year's Oscar race for Best Documentary Feature
began at Sundance, with the festival
yielding several standouts.
However, assuming that NCLB
began in the 2003 — 04 school
year yields smaller effects (a statistically significant 0.09 standard deviations in 4th - grade math and a smaller and statistically insignificant effect in 8th - grade math).
In addition, PCSD Instructional Coaches
began sharing the student Galileo and SAGE data, working with teachers inside classrooms, and modeling high
yield instructional practices, better known as job - embedded professional development, during the 2015 - 16 school
year.
Two days earlier we
began our testimonial tour to celebrate the life of the Defender, which, when it ceases production early next
year, will end a 67 -
year bloodline that
began with the Series 1 Land Rover and has
yielded more than 2 million vehicles.
For the past few
years, I've been personally investigating the limitations of Word and seeing firsthand how well Word can
yield a Kindle eBook, along with what does or doesn't work, and have just
begun the process of tweaking my own HTML.
The fall in oil prices that culminated in big declines for stocks, emerging market assets and high
yield bonds at the
beginning of this
year is the most recent manifestation of this linkage.
Yields on 10 -
year Treasuries
began the week around 1.75 %, rose as high as 1.88 %, and are now hovering around 1.84 %.
I think I would need to see 10 -
year BBB corporates at
yields of 7 % or so before I would
begin edging in there.
Well, at the 30 -
year auction, foreign interest was light at the lowest
yield since regular auctions
began in 1977.
Although the
yield of a 10 -
year U.S. Treasury bond has risen recently to around 2.50 % — that's not too far from where it was at the
beginning of 2017 (source: Bloomberg, as of 1/10/2018).
Meanwhile, intermediate - grade corporate bonds tracked by Barron's
began the
year yielding 207 basis points above the 10 -
year Treasury.
Since the
beginning of the
year,
yields in the region are largely ending up higher, with a few exceptions.
Yields in U.K. gilts have tightened by 41 bps since the
beginning of this
year, with the S&P U.K. Gilt Bond Read more -LSB-...]
An easy way to attempt to find value stocks is to use the «Dogs of the Dow» investing strategy by purchasing the 10 highest dividend -
yielding stocks on the Dow Jones at the
beginning of each
year and adjusting the portfolio every
year thereafter.
The
yield - to - worst of the S&P / BGCantor Current 30 -
Year U.S. Treasury Index closed the month at 2.90 %, 17 bps tighter than at the
beginning of the month, which was 3.06 %.