Sentences with phrase «yield curve increases»

The price - yield curve increases as yield decreases, and vice versa.
The following day, the yield curve increased, but only by an average of 2 bps.

Not exact matches

The U.S. Treasury is scheduled to announce its findings on a refunding survey on Wednesday, with analysts projecting an increase in auction sizes, or new issuance at different points on the yield curve.
Maybe - the Fed raises rates in response to increased CPI readings, perhaps enough to invert the yield curve.
The yield curve may also be narrowing over concerns that a boost to fiscal policy through tax cuts and an increase to spending caps may foreshorten the U.S.'s second - longest economic expansion.
San Francisco Fed President John Williams, said the yield - curve inversion was a powerful recession indicator but didn't see signs of it happening soon, and said he backed a gradual rate increase path.
We also like U.S. bank stocks, with steeper yield curves set to boost lending margins, and prospects for deregulation and increased payouts.
Another factor was the flattening of the US yield curves and the increase in expectations of ``... another round of monetary easing which will send gold prices past $ 1800.»
Amidst this backdrop, the 10 - year Treasury yield declined while short term rates increased, causing further flattening of the yield curve.
In fixed income, rate hikes by the Fed have led to higher interest rates on the short end of the yield curve, while longer - term rates have remained more contained (despite recent increases following tax reform).
Also, on a fundamental level, if a growing economy supports a steeper yield curve with a significant difference between long and short yields, banks stand to benefit from stronger earnings due to higher net interest margin and increased lending revenues.
Another factor causing the increase to over $ 1800 was the flattening of the US yield curves and the increase in expectations of ``... another round of monetary easing which will send gold prices past $ 1800...»
«As much as there's a lot of hoopla about this increased lending and profitability, all the lending in the world is not going to matter if Treasurys are right about growth and inflation going forward given this flattening of this yield curve,» he also said on «Closing Bell.»
The yield curve typically slopes upward to reflect the increased risk associated with lending over longer time horizons.
That article suggests the Fed might increase the short - term interest rate too fast causing the yield curve to invert or at least to flatten much.
The new fund will use what are called constant maturity swap curve caps to bet on both a steepening of the US yield curve and an increase in curve volatility.
Yields on 10 - year Treasurys were largely unaffected by this dramatic increase in short - term rates, flattening and eventually inverting the yield curve.
They want to stay on the short end of the yield curve to control their interest rate risk but are taking on an increasing amount of lower credit - quality issuers in an attempt to increase their yield.
A steepening curve is one where the longer maturity yields increase more than shorter maturity yields.
Learn about the major risks for the bond market in 2016; interest rate increases, high - yield bond volatility and a flatter yield curve may be issues.
As we had seen following the BoJ announcement on September 24, the movement away from signaling ever increasing amounts of QE and negative interest rate policy (NIRP) means a better environment for bank stocks, as steeper yield curves imply better margins and higher profits for banks.
A steepening yield curve (when the difference between short - term and long - term bond yields increases) is generally seen as favorable for the economy, suggesting healthier growth.
In general terms, yields increase in line with maturity, giving rise to an upward - sloping yield curve or a normal yield curve.
«In predicting recessions two or more quarters in the future, the yield curve dominates the other variables, and this dominance increases as the forecast horizon grows,» they said.
The two - year yield has increased 115 bps (see Exhibit 1), however the long end of the curve has fallen, producing a much flatter yield curve.
The above yield curve shows that yields are lower for shorter maturity bonds and increase steadily as bonds become more mature.
For example, while a slowdown in economic activity might have negative affects on current real estate prices, a dramatic steepening of the yield curve (indicating an expectation of future inflation) might be interpreted to mean future prices will increase.
A short term result of the Fed's continuing increase in the Fed funds rate is a flatter yield curve as seen in the chart of the spread between the 10 - year and two - year treasury notes.
The Underlying U.S. Treasury Note or Bond Yield, or the U.S. Treasury Yield Curve May Increase, Decrease or Remain Unchanged Over the Term of Your ETNs: The return on your ETNs is linked directly or inversely, as the case may be to the performance of the underlying index, which corresponds directly or inversely, respectively to changes in the underlying U.S. Treasury note or bond yield, or in the case of the FLAT and STPP ETNs, to the U.S. Treasury yield cYield, or the U.S. Treasury Yield Curve May Increase, Decrease or Remain Unchanged Over the Term of Your ETNs: The return on your ETNs is linked directly or inversely, as the case may be to the performance of the underlying index, which corresponds directly or inversely, respectively to changes in the underlying U.S. Treasury note or bond yield, or in the case of the FLAT and STPP ETNs, to the U.S. Treasury yield cYield Curve May Increase, Decrease or Remain Unchanged Over the Term of Your ETNs: The return on your ETNs is linked directly or inversely, as the case may be to the performance of the underlying index, which corresponds directly or inversely, respectively to changes in the underlying U.S. Treasury note or bond yield, or in the case of the FLAT and STPP ETNs, to the U.S. Treasury yield cCurve May Increase, Decrease or Remain Unchanged Over the Term of Your ETNs: The return on your ETNs is linked directly or inversely, as the case may be to the performance of the underlying index, which corresponds directly or inversely, respectively to changes in the underlying U.S. Treasury note or bond yield, or in the case of the FLAT and STPP ETNs, to the U.S. Treasury yield cyield, or in the case of the FLAT and STPP ETNs, to the U.S. Treasury yield cyield curvecurve.
Changes in the underlying U.S. Treasury note or bond yield or the U.S. Treasury yield curve are affected by a number of unpredictable factors, and such factors may cause the underlying U.S. Treasury yield curve to increase, decrease or remain unchanged over the term of your ETNs.
There is No Guarantee that the Index Level Will Decrease or Increase by 1.00 Point For Every 0.01 % Change in the Level of the Underlying U.S. Treasury Note or Bond Yield or U.S. Treasury Yield Curve: Reasons why this might occur include: market prices for underlying U.S. Treasury note or bond futures contracts may not capture precisely the underlying changes in the U.S. Treasury note or bond yield or the U.S. Treasury Yield Curve, as the case may be; the index calculation methodology uses approximation; and the underlying U.S. Treasury note or bond weighting is rebalanced monYield or U.S. Treasury Yield Curve: Reasons why this might occur include: market prices for underlying U.S. Treasury note or bond futures contracts may not capture precisely the underlying changes in the U.S. Treasury note or bond yield or the U.S. Treasury Yield Curve, as the case may be; the index calculation methodology uses approximation; and the underlying U.S. Treasury note or bond weighting is rebalanced monYield Curve: Reasons why this might occur include: market prices for underlying U.S. Treasury note or bond futures contracts may not capture precisely the underlying changes in the U.S. Treasury note or bond yield or the U.S. Treasury Yield Curve, as the case may be; the index calculation methodology uses approximation; and the underlying U.S. Treasury note or bond weighting is rebalanced monyield or the U.S. Treasury Yield Curve, as the case may be; the index calculation methodology uses approximation; and the underlying U.S. Treasury note or bond weighting is rebalanced monYield Curve, as the case may be; the index calculation methodology uses approximation; and the underlying U.S. Treasury note or bond weighting is rebalanced monthly.
Once past 10 years, and even more noticeably after 15 years, the yield curve is virtually flat and there is little or no increase in yield — even as maturities are extended and more risk is taken.
The result will be a bit different than that predicted by MDURATION, and the difference increases as the yield change increases (because you move further from the original tangent point on the curve).
If the bond market believes that the FOMC has set the fed funds rate too low, expectations of future inflation increase, which means long - term interest rates increase relative to short - term interest rates — the yield curve steepens.
One way banks try to overcome the impact of the flattening of the yield curve is to increase the fees they charge for services.
The combination of these two events means that the yield curve should steepen with anchored short - term rates and increasing intermediate to long term rates.
The increasing onset of demand for longer - maturity bonds and the lack of demand for shorter - term securities lead to higher prices but lower yields on longer - maturity bonds, and lower prices but higher yields on shorter - term securities, further inverting a down - sloped yield curve.
The increasing temporary demand for shorter - term securities pushes their yields even lower, setting in motion a steeper up - sloped normal yield curve.
Unfortunately for investors the curve steepening is likely to continue, even as yields on long duration investments have become attractive and the continuing increase in rates pushes prices downward.
Canadian interest rates have increased sharply as well, as the yield curve has steepened, which is good for bank profitability.
When the difference between short - and long - term interest rates increases, the yield curve is said to «steepen»; when the difference between short - and long - term rates decreases, the yield curve is said to «flatten».
Depending on the shape of the prevailing SGS yield curve, there may be certain occasions where the reference SGS yields do not allow a particular Savings Bond issue to have a monotonically increasing step - up interest feature (i.e. the implied coupon rates based on the reference SGS yields may decrease over part or all of the issue's tenor).
As its importance has increased, so has its profits, boosted by mortgage refinancings, a steep yield curve, investment banking revenues, and generally strong financial markets.
Given the current positive slope of the TIPS curve, you can pick up additional yield for increasing maturity without taking inflation risk.
We find that flat curves signal future increases in yield.
Combined, you would then see a further steepening of the yield curve, which could drive cap rates higher — without a concomitant increase in economic activity this could be a major negative for property values,» he says.
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