The junk or high
yield bond markets in the U.S. have seen diverse returns so far in 2015.
Not exact matches
The rise
in U.S.
bond yields has dented emerging
market currencies and
bond markets, including those
in Asia.
LONDON, April 23 - Hamstrung by a renewed slump
in volatility and lack of clear
market direction, FX and
bond speculators are making historically big bets on a lower dollar and higher
yields.
In a client note on Thursday titled «Yanking down the
yields,» the interest - rates strategist projected that
bond yields would be much lower than the
markets expected because central banks including the Federal Reserve were reluctant to raise interest rates.
Bond yields were mixed and credit spreads narrowed further: Weekly BAA commercial bond rates were not reported this week, presumably due to closures in the financial mark
Bond yields were mixed and credit spreads narrowed further: Weekly BAA commercial
bond rates were not reported this week, presumably due to closures in the financial mark
bond rates were not reported this week, presumably due to closures
in the financial
markets.
In addition to the aforementioned concerns, Golub noted fears about whether economic growth won't meet lofty expectations and signals being sent from the
bond market, where a narrower gap between government
bond yields is kindling fears that a recession is looming.
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.
Also, as
bond rates rise, some of the money that migrated over from the
bond market in search of higher
yields will return to the safety of fixed income.
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.
So far, though, no one is reporting any unusual outflows
in the
bond market, but Hamilton - Keen cautions investors against chasing high -
yield products.
In the short - term, however, this increased leverage may actually be bullish for junk
bonds, corporate
bonds, emerging
market debt and mortgage - backed securities as it brings higher prices and lower
yields, he said.
The
yield on the U.S. 10 - year Treasury jumped to its highest level since 2014 on Friday morning, underlining a wider move
in bond markets caused by central banks moving away from financial crisis policies.
The sell off
in the
market for high
yield debt, or junk
bonds, is now hitting a type of structured
bond that is similar to the the type that blew up
in the financial crisis.
Although there may not be a
bond bubble, with investors starved for
yield, Gundlach predicts a potential bubble could form
in credit risk as investors increase their leverage on riskier debt securities like junk
bonds and emerging
market debt.
A spike
in bond yields and a clear change of direction from central banks means there isn't a lot of value
in global
bond markets, a fund manager told CNBC on Tuesday.
In Japan, bond yields face a demand squeeze, Yasunari Ueno, chief market economist at Mizuho Securities, said in a note last wee
In Japan,
bond yields face a demand squeeze, Yasunari Ueno, chief
market economist at Mizuho Securities, said
in a note last wee
in a note last week.
Powell's comment was pointed to by
bond market strategists as a reason for a sudden pop
in bond yields.
On Wednesday,
bond yields in both the U.S. and Germany reached highs on the year, which likely helped trigger a selloff
in equity
markets Thursday.
(Repeats to additional subscribers) NEW YORK, April 24 (Reuters)- The U.S. benchmark 10 - year Treasury
yield topped 3 percent for the first time
in more than four years on Tuesday, a milestone that reflects the durability of the U.S. economic expansion and stokes the view the three - decade - old bull
market in bonds is numbered.
As interest rates rise, the prices of existing
bonds fall
in order to make the
yield of their fixed coupons competitive
in the
market.
«A bear
market in bonds calls for more than a global cyclical upswing, as not all forces that dragged
yields down over the past decades have suddenly vanished,» argued Peter van der Welle, a strategist at Robeco.
By mid-December it was clear that a late - quarter rout
in the high -
yield bond market was likely to hit revenues.
Exchange - traded funds that track high -
yield bond indexes have been the beneficiaries of a cash surge
in recent weeks as
market participants figure the central bank probably won't raise rates
in 2015, and it could be well into 2016 before anything happens.
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.
Meanwhile government
bond yields, a reliable barometer of
market fear, are falling to record low levels as investors engage
in a panicked hunt for risk - free assets.
Also, Ablin added a large portion of the recent rally involved a rotation from
bonds into stocks as low interest rates forced investors to seek
yield in the stock
market.
But he warned that could be changing: «There's a very low hurdle for that surprise because
bond market yields are so low
in the front end of the curve.
U.S. long - term rates would spike, while investors
in Canada would rush to the domestic fixed - income
market, setting off a
bond rally that would push Canadian
yields down «substantially,» said Burleton.
Early
in the year,
bond guru Bill Gross warned clients that if the 10 - year Treasury
yield jumped past 2.6 percent, bad things for the fixed income
market would follow.
The «Futures Now» team discusses big moves
in the
bond market, including climbing
yields in the U.S. 10 - Year note.
Although it is fair to say that the recent uptick
in volatility has
in part reduced earlier concerns about prolonged low volatility and associated reach - for -
yield behavior, it has placed added focus on the resilience of liquidity, particularly
in markets, such as the
market for corporate
bonds, that may be prone to gapping between liquidity demand and supply
in stressed conditions.
More from The New York Times: For
Bond Investors, Low Expectations
in a Low -
Yield World Emerging
Market Bonds Are on a Roll.
«If — and it's a big if — U.S. President - elect Trump delivers on his campaign - trail fiscal promises, U.S.
market interest expectations and
bond yields have room to rise even further
in 2017,» says Lena Komileva, managing director of g + economics
in London.
Bond yields snapped higher, adding to their already steep gains, and federal funds derivatives showed
market expectations are moving closer to pricing
in a full three interest rate hikes by December.
History shows when the benchmark rate for everything
in the economy from corporate
bond yields to mortgage rates moves by this much, this fast, the stock
market struggles
in the following months.
Bonds due
in 2018 and won by BofA were «aggressively» priced with a 1.64 percent
yield that narrowed Illinois» spread over Municipal
Market Data's benchmark triple - A
yield curve to 70 basis points from 100 basis points ahead of the sale, Greg Saulnier, a MMD analyst, said.
While many analysts were predicting
bond yields to rise this year as global economies improve, the suddenness of the move was a large factor
in the recent stock
market selloff.
Markets around the globe are keeping a close eye on the U.S.
bond market after the most recent move
in yields exacerbated a sell - off
in stocks on Tuesday.
Markets around the globe are keeping a close eye on the U.S.
bond market after the
yield on the 10 - year Treasury note topped 3 percent on Tuesday for the first time
in several years.
yields will hit the highs on close end of the day... equity
markets setting up to be slammed tomorrow maybe but today they have run over weak shorts
in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion
in credit, lack of wage growth rising
bond yields and ballooning debt... rates will go much higher and equities will have revelations as to what that means for valuations
Recent moves
in the
bond markets have unsettled investors used to low
yields.
Its underlying index selects and weights its
bonds by
market value, and this method
yields a portfolio that aligns well with our benchmark
in terms of credit tranches and maturity buckets, with the only notable difference being a slightly lower YTM.
Following the election
in the United States, there has been a rapid back - up
in global
bond yields, partly reflecting
market anticipation of fiscal expansion
in a US economy that is near full capacity.
Yields on U.S. government
bonds are already some of the highest
in the sovereign debt
markets and are attractive to non-U.S. buyers on an absolute and relative basis.
Nickel set for biggest weekly increase since April 2009 Dow Jones Industrial Average reaches record on Thursday Gold heading for worst week
in a month Largest increase
in 30 - year Treasury
yields since 2009 Italian
bonds are poised for worst three - week selloff since 2011 Emerging -
market stocks set for biggest three - day slide since August 2015 Mexico's peso plunges 12 percent
in three daysCommodities
Invest
in high -
yield bonds and dividend -
yielding stocks, says the BofA - Merrill team, which is overweight high - grade and high -
yield corporate
bonds, including financial sector names that are especially sensitive to the housing
market.
When
bonds yield 1.75 % for investment - grade
bonds, then it's difficult to turn that into a 5 % -10 % return going forward... If he wants to argue against that, and talk about Dow 5000 and bear and bull
markets, then he's welcome to, but he's pushing at windmills
in my opinion, and he belongs back
in his ivory tower.
The 35 year bull
market in bonds most likely ended on July 8, 2016 when the 10 year maturity U.S. Treasury Note
yield hit an all - time low of 1.36 %.
Trading across U.S. government
bond maturities was range - bound on Wednesday, with
yields little changed
in spite of gains
in the equity
market in the last few sessions.
In contrast, bond market exposure (in the form of yield curve and spread risk) has played a relatively minor role in driving convertible bond risk and return in the recent past and seems likely to play a minor role in the year ahead, based on our mode
In contrast,
bond market exposure (
in the form of yield curve and spread risk) has played a relatively minor role in driving convertible bond risk and return in the recent past and seems likely to play a minor role in the year ahead, based on our mode
in the form of
yield curve and spread risk) has played a relatively minor role
in driving convertible bond risk and return in the recent past and seems likely to play a minor role in the year ahead, based on our mode
in driving convertible
bond risk and return
in the recent past and seems likely to play a minor role in the year ahead, based on our mode
in the recent past and seems likely to play a minor role
in the year ahead, based on our mode
in the year ahead, based on our model.