Sentences with phrase «yield differential in»
The more general forces that have influenced the exchange rate over the past year or so have been the relative strength of the Australian economy, the associated yield differential in favour of Australian dollar assets, and the continued improvement in Australia's terms of trade, which are now at their highest level in more than 25 years.
https://www.rba.gov.au/ Not exact matches
With rates at near zero in the United States, and negative in Japan and Europe, the differential is a powerful lure for carry trades, in which investors borrow at ultra-low rates in currencies such as yen or sterling and buy high - yielding assets such as the kiwi.
That has caused U.S. - Japan and U.S. - German yield differentials to widen further in the dollar's favor, leaving the yen and the euro lower.
Because most wealthy Chinese seem to think about RMB in terms of USD or Hong Kong dollars, it is the fear that any depreciation of the RMB against those two currencies (the Hong Kong dollar is pegged to the USD through a modified currency board) greater than the couple of percentage points interest rate differential would yield less than equivalent USD or Hong Kong dollar bonds.
Overall, we are seeing a pickup in yields globally, resulting in narrower yield differentials between U.S. Treasuries and other sovereign bonds.
For a period in early May, bond yields in Australia had moved below those in the United States, i.e. the differential had become negative.
At the same time, the carry between Chinese interest rates and U.S. Treasury yields has now turned negative, meaning that there is no longer a favorable interest rate differential to encourage Chinese investment in U.S. government debt.
In early August, yields on 10 - year bonds were around 75 basis points above the cash rate, slightly less than the average differential since the mid 1990s (Graph 66).
The chart shows that a higher yield differential between U.S. and German government bond yields in the past typically spurred more foreign purchases of U.S. bonds, supporting the dollar.
In addition to precise differential velocities, this survey will also yield precise barycentric radial velocities for many thousands of stars using the data analysis techniques reported here.
Further scrutiny of the TW Hya disk with GPI and SPHERE in their differential coronagraphic imaging modes may yield direct detection of the planet (s) that appears to be actively carving a gap in the TW Hya disk — especially if the putative planet is still actively accreting gas from the disk.
The yield differential between Canadian and US bonds is likely to be quite small, and it will be completely overwhelmed by significant changes in the exchange rate.
As the US Federal Reserve is the only major central bank leading the departure from ultra-low rate policy, rising yield differential (in favour of US versus others) can see a re-strengthening of the US Dollar in the short term.
It has helped put «yield differential» back in the driver seat for global currency moves: this means higher US bond yields could drive the greenback higher.
Having said that, we find validity in WHT differential as a significant driver of performance when investing in high yielding assets.
In other words, the «dividend yield — 2 year Treasury yield» differential has almost no impact on the medium - long term direction of the U.S. stock market!
The carrying value and the fair value of the facility as of December 31, 2007 represents the present value of the differential in the spreads between the Company's credit default swap spreads and the yield applicable to the CPCT facility.
The gain was due to an increase in the differential between the Company's credit default swap spreads and the yield applicable to the CPCT facility.
On a relative basis, this equates to about 60 % more spread for a similar degree of credit risk.1 Spread differentials are even larger versus European and Japanese corporates given the extremely low yields in those regions.
It become a difficult, and intractable problem which does not yield to simple differential equations applied to idealized columns of gasses in «ideal» states.
However, they should not base this «buy - term - and - invest - the - difference» choice solely on differentials in potential yields inside and outside the policy.