Higher risk scores
yield higher government subsidies.
Not exact matches
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.
When we talk about bond market liquidity it's important to understand that there are lots of different «pools» out there such as
high yield bonds, munis,
government bonds, etc..
Low sovereign bond
yields have long helped the
government finance its debt, thus,
higher yields would undermine the sustainability of its fiscal position, analysts said.
U.S.
government debt
yields were
higher Tuesday even after investors heard from Fed Chair Janet Yellen.
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.
Overseas, UK
government bond
yields spiked after
higher - than - expected inflation data.
Poland's 10 - year
government bond
yield rose 7 basis points to 3.14 percent, its
highest level in four weeks, rising more than U.S. and German
yields which it often tracks.
While credit risk might seem like a bad idea with the U.S. economy still weak and the rest of the world looking equally uncertain,
high -
yield bonds do offer bigger returns than
government and investment - grade bonds.
10 - year
yields on Austrian
government bonds — and indicator of stress on the country — are moving sharply
higher this morning.
Euro zone
government bond
yields jumped on Thursday, kicking recent sharp falls into reverse, and the euro climbed to a six - day
high.
LONDON, April 30 -
Government bond
yields in the euro area nudged
higher on Monday as focus turned to preliminary inflation data from Germany and Italy, two of the bloc's biggest economies.
With equity valuations at historic
highs and
government bonds barely eking out a return, junk bonds offer solid
yields at a good price, he reasons.
The Spanish IBEX 35 is up 1 % percent this morning, and
yields on
government bonds are relatively steady after shooting
higher on Monday and Tuesday.
While it's better to invest than keep money under a mattress, buying risk free securities, such as guaranteed income certificates or low -
yielding government bonds, could actually be riskier than purchasing
higher returning products, says Ted Rechtshaffen, president and CEO of Toronto's TriDelta Financial Partners.
Rising inflation expectations in recent months have been reflected in U.K.
government bond (gilt) prices with the
yield on 10 - year gilts touching its
highest level since April this year at 1.509 percent in Monday's session.
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.
The U.S.
government does not issue
high -
yield bonds.
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European
government bond and U.S. 10 - year Treasury
yields are trading at their
highest levels in more than two months and the U.S. 30 - year Treasury bond
yield reached a
high for the year on Tuesday.
The
yields and risks are generally
higher than those offered by
government and most municipal bonds, and the income is subject to state and federal taxes.
Typically, a
higher - rate environment will increase spreads for banks / insurers, but you're absolutely right that the 10 - year
yield could stay flat, especially when the
yields for
government bonds of other countries are so low.
Banks «earned their way out of debt» by lending to global speculators who used the yen loans to convert into foreign currency and buy
higher -
yielding assets abroad — capped by Icelandic
government bonds paying 15 %, and pocketing the arbitrage difference.
Over the past five years, the more worrisome
government - issued debt in Europe has made significant progress in managing the normal mechanism of
higher - perceived risk equaling
higher yields.
The crisis, which has affected every level of
government in the state, is a cautionary tale for not only public spending run amok but also independent investors taking too large of a risk by seeking
high yields.
Bond
yields — from
government to
high yield to corporates — have all fallen precipitously since the financial crisis.
Typically, the market for
high yield bonds is less liquid than the market for investment grade or
government bonds.
Wealth managers suggested reducing investment in
government securities significantly, to 42.8 percent in November from 48.2 percent, while upgrading investment grade and
high -
yield allocations as they look for better returns.
The BofA Merrill Lynch
high -
yield index is trading at roughly 600 basis points versus
government bonds, but if energy, metals and mining is excluded, it's about 80 basis points less in terms of spread.
Yields on high - yield corporate bonds narrowed (centre panel) and record low government bond yields pushed up valuations of risky assets (right - hand p
Yields on
high -
yield corporate bonds narrowed (centre panel) and record low
government bond
yields pushed up valuations of risky assets (right - hand p
yields pushed up valuations of risky assets (right - hand panel).
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.
The reason: a surge in
yields on US Ten Year
Government Treasury Bonds, which hit a four - year
high of 2.86 per cent.
Structural factors such as aging populations, poor productivity growth and
high debt levels mean historically low
government bond
yields are likely here to stay.
In a country where the unemployment rate is at a 20 - year low and industrial output is approaching historical
highs, fueling inflation concerns, a 10 - year
government bond
yield of 1.5 % is totally inappropriate and will naturally spur people to buy real estate.
Toronto - Dominion Bank has lifted its posted rate for five - year fixed mortgages by 45 basis points to 5.59 percent as
government bond
yields touched their
highest levels since 2011 this week.
There is the Treasury or
Government bond, the Zero - coupon bonds, the Fixed rate bonds, the Floating rates notes, the
High -
yield bond, the Exchangeable bonds, the Convertible bonds, the Inflation - indexed bonds, the Subordinated bonds, the Covered bonds, the Perpetual bonds, the Bearer bonds, the Municipal bonds, the Revenue bonds, and the Social impact bonds amongst others.
The euro hit three - year
highs and
government bond
yields rose after a hint the ECB boss may rethink how long ultra-loose policy will last.
Everything went up in February,
government bonds, credit,
high yield, equities, gold, oil — all rose.
Privately held debt of the U.S.
government as a share of GDP increased this cycle to 74 % from 39 % in 2008, prompting concern that the U.S. is doomed to a debt trap in which
high debt and low
yields result in more debt.
This means that
Governments around the world will be competing with their own Central Banks to sell debt, and the result could be much
higher bond
yields going forward.
For a number of years, concerns had been expressed about the underpricing of risk in a range of financial instruments and the associated search for
yield as investors sought
higher returns in non-standard financial products as the
yield on more standard products such as
government bonds was deemed to be inadequate.
While much of the outflows so far have been a result of investors switching out of
high yield into safer money - market and
government bond funds, Gutteridge believes we have seen the bulk of the selling.
UK
government bond (gilt)
yields have been on the rise in anticipation that the Bank of England (BoE) will increase rates on November 2 in response to
high inflation.
Yet by setting
yields so low and bond prices so
high, markets are sending a clear signal that they want more, not less,
government debt.
It's also interesting to examine the changing significance and dynamics of the European bond market in general, which has almost doubled in size since 2005 to more than $ 10 trillion today, including
government, investment - grade corporate debt and
high yield.
I could have also used a 30Y
Government Bond with significantly
higher yield (2.3 % vs. 1.5 %), but for the sake of the example I picked the 10Y.
But in the last few episodes of sharp stock market drops, bonds went up (US
government bonds are a safe haven asset and appreciate in crisis periods) so the only thing better than 3 months worth of expenses in a money market fund is having 3 + x months worth of expenses in the bond portfolio due to
higher bond
yields and negative correlation between bonds and stocks.
Eligible sectors include U.S. Treasurys, global
government - related bonds, global investment - grade and
high yield corporate bonds, and emerging market bonds.
The changes come as
yields on five - year federal
government bonds rose to 2.18 % last Wednesday, the
highest in nearly seven years.
IMTB has a very broad mandate, covering investment grade and
high yield corporate,
government, and emerging market bonds with maturities between five and ten years.