Sentences with phrase «yield on bonds»

The bond market reacted accordingly, and required more yield on bonds with no inflation protection.

They have also increased the cost of new fixed - rate mortgages as yields on the bond market have moved higher.

As market conditions change, yield on the bonds rise or fall.

The nominal yield on a bond is simply the percentage of interest to be paid on the bond periodically.

Let's say the real yield on bonds should be 2 % and that inflation will also be 2 % (+ / --RRB-.

It seems to me we need to get people expecting more inflation and thus wanting more yield on bonds to fix this.

The current yield on a bond is its annual coupon divided by its current price.

That relationship is the definition of the redemption yield on the bond, which is likely to be close to the current market interest rate for other bonds with similar characteristics.

To determine the potential yield on a bond, investment managers can use a number of different portfolio management techniques.

During my investing career, the key relationship between long - dated investments has been the interest yield on bonds vs. the earnings yield (1 / PE) on stocks.

Recently, yields on these bonds hit all - time lows.

Increasing life expectancy, disappearing sources of guaranteed income, and historically low yields on bonds make for some tough fixed - income investing conditions; a disciplined approach can help.

My retirement accounts are more like a 50 - 50 split between stocks and bonds, because of a longer time horizon and because yields on bonds are extremely unattractive right now.

Over time, your returns will mirror the performance of the business or basket of businesses you own (same goes for yield on a bond).

In fact the average yield on bonds issued by Group of Seven countries (United States, Canada, Germany, U.K., France, Italy, Japan) has fallen to 1.23 % as of June 12, from around 3 % back in 2007.

Investors have demanded higher yields on bonds as inflation worries have intensified.

As long as yields on bonds from other G7 countries remain below Treasuries, it's another reason why U.S. bond yields may remain lower for longer.

The U.S. doesn't have to offer much yield on these bonds to generate interest, and as such, the SHY only yields 1.2 %.

Unfortunately, with yields on bonds near zero, you will have to take on more equities (with added risk) to keep your nest egg growing and not run out of money before you die (remember we're living longer now).

That brings me to the second article, which says that long interest rates are at record lows, as measured by average Treasury yields on bonds with 10 years or more to mature.

So is a persistent environment of near - zero yields on bonds.

Par indicates the bond is trading at its issue and maturity price with the exact yield on the bond as the initial coupon.

The inducement for this is a high yield on the bond in the average - to - good scenario.

TIRED OF THE PUNY YIELDS ON YOUR BONDS?

Dividend stocks have taken the investing world by storm, as income - starved investors look for ways to make up for rock - bottom yields on bonds and other fixed - income assets.

The Federal Reserve's policy of keeping interest rates low to spur growth has had the secondary result of lowering yields on bonds and other securities, encouraging investors to look elsewhere for higher returns.

Valuations are high, but not implausibly high given real yields on bonds.

Another way to calculate current yield on a bond: If an investor purchases a 5 % coupon rate bond for a discount of $ 900, she will earn annual interest income of ($ 1,000 X 5 %), or $ 50.

Stretching for dividends is as bad as stretching for yield on bonds.

Right now, Marc's average dividend from his Oxford Income Letter portfolios is about 4.8 %, and the average yield on the bonds I recommend, that's income from bonds, is around 7 %.

It's the total earnings - per - share the market generates as a percent of the market's total value — a measure similar to the yield on bonds, where the yield rises when bond prices fall, and vice versa.

The yield on a bond rises when its price falls.

During times of recession the economy is stimulated with low interest rates and once they get low enough, the yield on bonds and other fixed investments becomes so unattractive that money starts to flow into equities.

The institutions are not only using the money to meet their own short - term financing needs, they are also borrowing additional money to purchase the bonds of troubled countries and earn the spread between the yields on those bonds and the much lower rate the ECB is charging them for money.

By looking at the yields on bonds with different maturities you can get a picture of how much extra you can earn.

As the yields on these bonds change, the «shape» of the yield curve changes.

But because the yield on bonds would now be much higher, the expected return going forward would now be around 5.1 % annually, meaning the breakeven would be just over 3 years.

The yields on these bonds reflect investor expectations about many things, such as future growth rates and inflation.

Craig W. Johnson, who is director of Piper Jaffray's technical research group, told CNBC that yields on those bonds were entering a «danger zone» while the market was reaching an «inflection point.»

A day later, if the yield on the bond falls to 1 %, the SEC yield on the fund would decline from 2 % to 1 %, but the distribution yield would remain at 2 %.

In January 2018, Craig W. Johnson, who is director of Piper Jaffray's technical research group, told CNBC that yields on those bonds were entering a «danger zone» while the market was reaching an «inflection point.»

Movements in the exchange rate between the Canadian dollar and U.S. dollar could easily overwhelm the yield on a bond investment.

However at 10.75 %, the yield on the bond is still much higher than government's initial target of 8.5 % and also higher than the previous one which had coupon rates of 8 % and 8.5 % percent for its $ 2 billion bond issued.

As illustrated above, bond ladders work best when the yield on the bonds to be bought in the future years is higher than the current yield.

In theory, the yield on a bond can not drop below 0 %.