Besides, as this research shows, even at today's low
yields bonds remain an effective way to hedge equity risks and diversify your portfolio.
Not exact matches
The central bank said it will purchase Japanese government
bonds so that the
yield on the 10 - year note will
remain at around zero percent.
«The Canadian dollar and
bond yields remain near levels observed at that time.
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.
Others have noted that if the Fed continues raising short - term rates while long - term rates
remain stalled, it could turn the shape of the
bond yield curve upside down, a typical signal of recession.
«Net short positions on 10 - year Treasury notes are at historical highs, implying that rising US
bond yields remains among hedge funds» major convictions.»
Separately, they also argued that
bond yields are the «Achilles» heel of global markets,» arguing that «market pricing on Fed rate hikes, however,
remains modest and there is to our minds significant risk of a more disorderly repricing of global
bond yields.
Concern
remained over higher
bond yields after the
yield on the U.S. 10 - year Treasury breached 3 percent level on Tuesday, making equities relatively less attractive.
While
bond yields are slightly higher, financial conditions
remain accommodative in Canada.
One of the best economic indicators, the
yield curve or the spread between short and long - term
bonds remains in positive territory, with the long - term much higher than the short.
SHYL tracks an index of USD - denominated high -
yield corporate
bonds with 0 to 5 years
remaining to maturity.
Although the focus on the
yield curve has led to fewer
bond purchases, the Bank of Japan may have little choice but to continue to inject significant amounts of liquidity into an economy that
remains beset by demographic challenges.
Generating income
remains a struggle for many investors despite the recent surge in government
bond yields.
Over the past year, the
bond yield curve has been positive but flattening (short - term
yields remained lower than long - term
yields, but the differential has narrowed).
Bond yields are down slightly, credit spreads have
remained well behaved while widening subtly, and there has been limited flight to traditional perceived safe havens like the U.S. dollar or gold.
High -
yield bonds are in the eighth year of an investment cycle that has seen assets under management grow threefold, to $ 300 billion, so interest among investors
remains high.
Japanese shares hit a two - month closing high on Tuesday with financials leading gains after U.S.
bond yields spiked to four - year highs and as investors
remained optimistic about upcoming earnings.
While she expected that
bond yields might not fall too much near term as managers would need to allocate some funds to cash
bonds, swaps and futures would likely
remain under pressure.
As long as Group of Seven nation
bond yields remain generally lower than similar - maturity Treasuries, it's just one more reason why
yields on U.S.
bonds are likely to stay lower for even longer.
The Market Climate
remains on a Crash Warning, characterized by extremely unfavorable valuations, unfavorable trend uniformity, and hostile
yield trends, particularly long - term
bond yields and various measures of risk premiums.
In
bonds, the Market Climate
remains characterized by unfavorable valuations and unfavorable
yield pressures, holding the Strategic Total Return Fund to a duration of less than 1 year.
Yet the currency is likely to
remain weak as zero - anchored Japanese 10 - year
bond yields encourage local investors to buy higher -
yielding foreign
bonds.
While
yields on government
bonds remain unattractive, according to Stopford, investment - grade corporate
bonds offer a modest pickup in
yield — and high -
yield bonds, a more significant advantage.
In
bonds, the Market Climate
remained characterized last week by unfavorable
yield levels and modestly favorable
yield trends.
Moreover,
bond yields didn't
remain on their upward trajectory making it particularly difficult for financials to perform in this kind of environment.
In addition, as discussed in the chapter on «Domestic Financial Markets», Australian
bond yields remain relatively low, despite having risen a little recently.
Russ explains why the quest for
yield will
remain challenging and why it may be time to give high
yield bonds another look.
The main exception to this global pattern has been Japan, where 10 - year
bond yields have
remained remarkably stable, generally trading in the range between 1.7 per cent and 1.8 per cent so far this year (Graph 8).
While spreads between
yields on highly - rated corporate
bonds and government
bonds have
remained above their historical averages, this continues to reflect strong demand for Commonwealth Government
bonds rather than concerns about corporate credit quality.
The continuing low level of government
bond yields has supported the search for
yield that has been evident over the past couple of years, with the spread between
yields on US government debt and
yields on both corporate and emerging market debt
remaining around historical lows over the past three months (Box B).
Global
bond yields remain relatively low, reflecting expectations that global interest rates are still likely to
remain low for some time, notwithstanding upward revisions to those expectations in the past couple of months.
Bonds have been in a bull market for 35 years and
yields, though off their 2012 lows,
remain at historic extremes.
Some worry interest rate /
bond yield increases will kill the stock bull market, but that possibility
remains some ways off in our estimation.
Yields on 10 - year US government
bonds have
remained within a relatively narrow range around 4.2 per cent over the past three months.
Notwithstanding this rise,
bond yields in Japan
remain at historically low levels, with 10 - year
yields at 1.8 per cent.
Even though the
yield - to - maturity for the
remaining life of the
bond is just 7 %, and the
yield - to - maturity you bargained for when you bought the
bond was only 10 %, the return you have earned over the first 10 years is an impressive 16.26 %!
The downside for investors, if a high
yield bond is called, is the loss of interest return for the years
remaining in the life of the
bond.
Given these forces, along with more structural considerations ---- aging populations, institutional demand for
bonds and a dearth of supply ---- I expect that long - term
yields will
remain low even as the Federal Reserve (Fed) starts to raise rates.
Despite the headline news on India's high deficits and low economic growth, the Indian
bonds remain very popular among investors who hunt for
yields.
If valuations
remain high or increase, at some point higher
yields may make
bonds more attractive relative to equities.
If this
bond - equity relationship
remains unstable when
yields are at risk of climbing further, long - term Treasuries may not play their traditional portfolio diversifying role.
Short term interest rates
remain near zero, 10 - year
bond yields have declined below 2 %, and our estimate of 10 - year S&P 500 total returns has declined to just 1.4 % (see Ockham's Razor and the Market Cycle for the arithmetic behind these historically - reliable estimates).
In
bonds, the Market Climate last week
remained characterized by relatively neutral
yield levels and unfavorable
yield trends.
BlackRock's base case for 2017 is that U.S. - led global reflation will accelerate,
bond yields will gradually move higher and returns will
remain low, as we write in our 2017 Global Investment Outlook.
The conditions have fueled a rally in Portugal's sovereign
bonds so far this year, although they
remain the second - highest
yielding bonds in the eurozone, behind those of Greece.
An alternative, and perhaps more likely, interpretation is that the market expects that the target cash rate will
remain below its average over recent years for some time, and this expectation is reflected in
bond yields.
The implication of this for
bond yields remains troublesome to say the least.
Long - term
bond yields have been quite volatile since the previous Statement, and in net terms are up slightly, although they
remain around 1/2 a percentage point lower than in mid 2002.
Dividend stocks currently
yield more than government
bonds in major markets such as Canada and may
remain a valuable source of income even as interest rates slowly begin to rise south of the border.
In
bonds, the Market Climate
remained characterized last week by moderately unfavorable
yield levels and favorable
yield pressures.