Note: Using the above yield curve as an example, it should not interpreted to say that the market believes that two years from now the short - term interest rates will be 2.7 % (the two -
year yield as shown above).
Not exact matches
LONDON, April 30 - The 10 -
year U.S. Treasury
yield's rise above 3 percent last week for the first time in over four
years may be cause for concern across wide swathes of financial markets, such
as equities and emerging markets.
NEW YORK, April 23 - The U.S. dollar rallied to a four - month high on Monday
as the 10 -
year Treasury
yield's climb toward the psychologically important 3 percent level spurred buying of the greenback, leaving the euro and yen lower.
LONDON, May 1 (Reuters)- The dollar broke into positive territory for the
year and bond
yields were creeping higher again on Tuesday,
as the recent rise in oil prices fuelled bets that the U.S. Federal Reserve will flag more interest rate hikes this week.
CHICAGO / SAN FRANCISCO, April 20 -
As the gap between short - and long - term borrowing costs hovers near its lowest in more than 10
years, speculation has risen over whether the so - called
yield curve is signaling that a recession could be around the corner.
The main stock index dropped by
as much
as 2.4 percent earlier, while the benchmark 10 -
year government bond
yield rose to 6.944 percent, the highest since August 2017.
LONDON, May 1 - The dollar broke into positive territory for the
year and bond
yields were creeping higher again on Tuesday,
as the recent rise in oil prices fuelled bets that the U.S. May Day holidays across Asia and Europe meant trading was thinner than usual, though there was more than enough news flow to keep those...
The equity rebound comes despite a rise in the U.S. 10 -
year yield to a fresh four -
year high
as President Donald Trump sent a request to Congress for $ 200 billion to support a $ 1.5 trillion infrastructure plan.
They typical
yield around 4 percent while a 10 -
year U.S. Treasury bill
yields 2.58 percent
as of Friday.
During a public webcast on January 14 when the 10 -
year yield was at around 3.0 % and when Wall Street said it would climb to 3.4 %, Gundlach predicted that it could fall
as low
as 2.5 % in the near - term.
The dollar has rallied through much of the past week
as concerns over the U.S. - China trade dispute receded, and
as the U.S. 10 -
year bond
yield shot past 3 percent for the first time in four
years.
NEW YORK, May 1 - The dollar broke into positive territory for the
year and U.S. bond
yields inched higher again on Tuesday
as the recent rise in oil prices fueled expectations the Federal Reserve could flag more interest rate hikes at its policy meeting this week.
For one thing, those 10 -
year Canada bonds are
yielding just 1.14 % and could lose value should interest rates rebound from their recent lows,
as many market - watchers expect.
That relationship has played out this
year —
as interest rates have risen since January, the HYG high
yield corporate bond ETF has come under pressure.
That's exactly what has happened over the last month,
as shown in this graph of the
yield on the 10
year US treasury bond for the last
year (keep in mind that
yields going up means prices going down):
So, it is a very different market than it was 10
years ago, and you're going to see a lot of corporate bond issuance
as these infrastructure projects go out there, and you can capture some pretty good
yields and you know what you're buying because it's a corporate bond.
Postelection selling of longer - dated maturities ran
yields up by
as much
as 90 basis points, with the 10 -
year briefly crossing 2.60 % on two separate occasions.
Sure enough, the
yield on a Canadian 10 -
year bond has risen in tandem with its U.S. counterpart since the start of the
year, even
as Poloz has signaled caution ahead.
In January, Miller said a rise in the 10 -
year Treasury
yield above 3 percent «will propel stocks significantly higher,
as money exits bond funds for only the second
year in the past 10.»
The high -
yield market has underperformed equities this
year, often seen
as a sign of trouble for stocks.
More favourable growing conditions this season should lead to a sharp increase in the number of red and white grapes crushed, while regions such
as Swan and Manjimup should continue to see increasingly larger
yields over the next five
years.
The gap between the 10 -
year French and German government bond
yields has widened to a five - day high
as political uncertainty returned to France.
With a huge demand for GPS trackers from brands, companies, individuals and Government agencies, the industry has been touted
as a goldmine that can
yield an estimated 50 billion dollars in a calendar
year.
The longest portion of the offering, a 30 -
year security,
yields 1.95 percentage points above Treasuries, after initial talk of around 2.15 percentage points, according to people with knowledge of the matter, who asked not to be identified
as the details are private.
Already, the 10 -
year yield has dropped back to 2.8 percent — largely
as a result of President Donald Trump's desire to initiate trade wars.
In addition, everyone is now fretting about an «inverted
yield curve,» which is the phenomenon when long - term
yields, such
as the 10 -
year yield, fall below short - term
yields, such
as the three - month
yield or the two -
year yield.The last time this happened was before the Financial Crisis.
Although Spain's borrowing costs have fallen over the past two months on the back of the ECB's new rescue plan, the Spanish 10 -
year yield is still hovering just below 6 percent - a level that has been seen
as unsustainable since the crisis escalated in 2011.
In a sign of market interest, the longest portion of the offering, a 40 -
year security may
yield 1.45 percentage points above Treasuries, down from initial talk of 1.6 percentage points to 1.65 percentage points, said the person, who asked not to be identified
as the deal is private.
According to Bloomberg's Anchalee Worrachate, Major says the 10 -
year yield will fall
as low
as 1.5 % to end the
year about 2.5 %, while 74 forecasters surveyed by Bloomberg see it rising to 3.0 % by
year - end.
CHICAGO / SAN FRANCISCO, April 20 (Reuters)-
As the gap between short - and long - term borrowing costs hovers near its lowest in more than 10
years, speculation has risen over whether the so - called
yield curve is signaling that a recession could be around the corner.
U.S. two -
year Treasury
yields reached 2.453 percent on Friday, the highest level since September 2008
as the two -
year's spread versus two -
year German Bunds grew to 302 basis points, the widest in more than three decades.
The U.S. Federal Reserve's gauge of inflation remains stubbornly below its 2 percent target, but U.S. 10 -
year Treasury
yields spiked to near four -
year highs in January
as a bond sell - off gathered steam.
Assuming they and insurance companies buy
as much
as JP Morgan and others estimate, long - term
yields may not rise at all this
year and
yield curves will remain flat.
During a webcast presenting his 2017 outlook, Gundlach, the founder of DoubleLine Capital, said certain «second - tier» managers were focusing on 2.6 %
as an important level for the 10 -
year Treasury
yield — a threshold beyond which the bull market in bonds would end.
Bond
yields have swung higher this
year as the Federal Reserve signaled a more hawkish turn on monetary policy.
The
yield on the 10 -
year Treasury fell below 2 % for the first time since May 2013 in early trading in Europe, while gold rose to a three - week high of $ 1.213.60 a troy ounce,
as investors once again shunned anything that smelled remotely of risk.
NEW YORK, Feb 5 - The dollar rose against a basket of currencies on Monday
as the U.S. bond market selloff levelled off after the 10 -
year yield hit a four -
year peak on worries that the Federal Reserve might raise interest rates faster to counter signs of wage pressure.
Ultimately, he sees the S&P 500 in 2018 ending 9 percent higher than current levels
as long
as the 10 -
year Treasury
yield stays below 3 percent.
Seeking to protect its console business, the Japanese group had for many
years resisted introducing mobile games with its best - known characters such
as Super Mario Bros. and Pokemon, finally
yielding to investor calls last
year when it announced a tie - up with mobile specialst DeNA Co..
«If the Fed continues to raise rates according to our forecast and the term premium does not recover, the
yield curve would invert by the end of 2019, potentially
as early
as June of next
year,» they write in a note.
Lewis, fund's chief investment officer, spent nine
years at Citigroup
as a director of the bank's global special situations group, a $ 5 billion prop - trading group that specialized in distressed debt, high -
yield bonds, and value equity.
All eyes are on the U.S. 10 -
year Treasury
yield on Monday
as it could imminently hit the 3 percent threshold.
The correlation between U.S.
yields and the dollar had broken down earlier this
year as investors focused more on trade frictions and geopolitical issues.
Additionally, Tchir argues that European investors have shown a proclivity to rush into trades leading to what he calls «periods of violent indigestion,» pointing to the big swing in German bund
yields seen early last
year following the European Central Bank's announcement of more QE
as a prime example.
The
yield curve - the plot of all of the
yields on Treasury securities of maturities from four weeks to 30
years - is used
as a signal of economic health of the economy.
As a result, bonds, which rise in price when
yields drop, had a very good
year in 2014.
Bond
yields have been on an upward march this
year as higher inflation expectations spurred predictions of a more hawkish Federal Reserve.
Meanwhile, benchmark 10 -
year note
yields have broken above a long - term downtrend in effect since the 1980s, which some technical strategists see
as a bearish indicator going forward.
Bonds tumbled
as upbeat consumer spending data lowered demand for U.S. debt, pushing the two -
year note
yield to its highest level since 2011.
But the bank has taken more extreme measures, such
as ramping up purchases to more than 40 percent of the market overall and saying it would control the
yield curve by keeping the 10 -
year government bond
yield around 0 percent.