Not exact matches
So there's almost more concern
for locking in a long - term rate of income than there is
for just maybe catching a higher
yield at one
point in the cycle in the front end.
The
yield on the U.S. 10 - year Treasury note added roughly 60 basis
points this year, topping the 3 percent mark this week
for the first time in four years.
While some viewers called it «gross» and «vulgar,» the spot racked up some 20 million YouTube views by the end of last year, at one
point yielding one share
for every nine views — proof positive that schoolyard humor never goes out of style.
Powell's comment was
pointed to by bond market strategists as a reason
for a sudden pop in bond
yields.
While Fink is right to
point out that low interest rates are putting a large burden on those of us trying to save retirement, he does not address the fact that central banks aren't primarily responsible
for the fact that bonds of all types are
yielding less today than we're used to.
April 26 - U.S. stock index futures
pointed to a strong open
for the tech - heavy Nasdaq on Thursday as a slew of upbeat earnings from Facebook and Qualcomm helped set aside worries over rising U.S. bond
yields and corporate costs.
The company's lone outstanding junk bond, worth $ 1.8 billion and maturing in 2025, briefly dropped two
points to as low as 85 cents on the dollar
for a
yield of around 8 percent on Monday, according to MarketAxess data.
Check out 10 - year
yields,
for example, which are down 9 basis
points today to 6.8 percent:
So if we can expect 3 more quarter -
point hikes this year it would seem to make sense to stick to short - term CDs
yielding around 2 % now and then look
for a longer - term one at around 3.5 % at EOY, especially if one — I am in this camp — thinks that by EOY the odds of recession will have risen enough that further rate hikes in 2019 will be looking doubtful.
Gold surges toward $ 1400 / oz, S&P 500 tumbles to 2000, 10 - year Treasury
yield to 1.5 %; if credit spreads don't crack (e.g. IBOXHYSE < 500bps) and Mexico peso finds quick low = entry
point for risk - takers (especially if Trump protectionist fears allayed); until then best Trump trades = long gold, short EU banks, long US small - cap, short EM.
Rates
for home loans eased up slightly as investors bought more bonds, sending
yields down a few basis
points.
Tehran also regularly criticises European countries
for yielding to US pressure on this
point.
Yields on U.S. 30 - year bonds, which are more sensitive than shorter maturities to the outlook
for inflation, have jumped almost 40 basis
points since last Friday and a $ 15 billion auction of the tenor on Thursday showed waning appetite
for the securities.
It is really about picking up nearly 2 percentage
points more of
yield while waiting
for Mr. Carney to act on rates, at which time, it would be best to switch to shorter duration holdings.
For example, U.S. 10 - year Treasury
yields closed in on 2.50 percent last week, roughly 50 basis
points (0.50 percent) higher than their late April levels.
The neutral rate — which anchors the level of the entire
yield curve — is a useful starting
point for understanding what's driving low interest rates.
For example, while high
yield spreads are considerably lower than they were at the January market bottom, they are approximately 200 basis
points (2 percent) wider than they were two years ago, as Bloomberg data shows.
Note that the real interest rates exceed reported
for TIPS because I have adjusted
yields to reflect the 35 basis
point average difference between the Consumer Price Index used in calculating TIPS coupons and the Personal Consumption Expenditures deflator targeted by the Fed.
The
point I'm trying to make is that even with the basic assumption of retiring by 65 with $ 1 million dollars and a 4 % withdrawal rate
yielding $ 40,000 a year, this might not be reasonable
for many people.
The Barron's article
pointed this out as well, citing London - based «G+E conomics» head Lena Komileva: «A surplus of investment funds looking
for returns in low -
yield global markets results in a cap on longer - term
yields and a flat
yield curve.»
Economic indicators ranging from Saxo Bank's proprietary credit impulse to the
yield curve and credit card delinquencies all
point in a single direction — the US is heading
for recession.
Currency strategists gave weaker exchange rate forecasts
for major emerging countries such as China, Brazil, South Africa and Turkey in the monthly survey,
pointing to a sixth straight year of dollar gains against most high -
yielding currencies.
The average market impact cost was 29 basis
points (39 basis
points) per $ 1 million traded
for investment - grade (high -
yield) corporate bonds.
«
For the first time in weeks, the 30 - year mortgage rate moved with Treasury
yields and jumped 11 basis
points,» Freddie Chief Economist Sean Becketti said in a release.
The
yield's maturity rose 10.5 basis
points for the week, the largest such gain since Feb. 2.
On 15 October, the
yield on 10 - year US Treasury bonds fell almost 37 basis
points (Graph 2, left - hand panel), more than the drop on 15 September 2008 when Lehman Brothers filed
for bankruptcy.
The maturity's
yield picked up 8.8 basis
points for the week.
For example, the research shows that in the 12 months before a market peak, U.S. 10 - year Treasury
yields have on average widened by more than 100 basis
points.
December was another solid month
for European high -
yield debt, with Barclays's benchmark cash index tightening by 40 basis
points, ending the year at a new post-crisis low.
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.
The add - on
for federal direct loans
for graduate school students is 3.6 percent, while rates
for PLUS loans will be equal to the 10 - year Treasury note
yield plus 4.60 percentage
points.
The one - day loss
for many funds, including Vanguard Total Bond Market, iShares Core U.S. Aggregate Bond, Pimco Total Return and Metropolitan West Total Return, while less than a half a percentage
point, still amounted to more than 10 percent of their current
yield.
As Wolf Richter
pointed out
for Wolf Street earlier this month: «Since mid-December 2016, the Fed has hiked rates four times, in total by 1 percentage
point, but over the same period, junk bond
yields rated CCC or below have declined 1.5 percentage
points as the bonds have rallied.»
The benchmark 10 - yr
yield,
for instance, finished at 2.95 % on Thursday — which is about eight basis
points below the more than four - year high it hit last week.
In Europe, the
yield for the 10 - year German bond TMBMKDE - 10Y, +1.25 % also known as bunds, fell sharply by 5.2 basis
points to 0.527 %, according to Tradeweb data.
For borrowers, leveraged loans offer two significant advantages over high -
yield bonds: They are cheaper, by about 100 basis
points on average at the moment.
If you are looking at a 10 year corporate bond which is
yielding 5 %
for example, and at the same time the 10 Year treasury bond is
yielding 2 %, then the credit spread is 300 basis
points (3 %).
Today, one - month Treasuries
yield 1.2 %, and the Federal Reserve is positioned
for three more 0.25 - percentage -
point increases in rates in 2018.
While this demand
for yield trend may explain some of why this principal component moved this year and may even highlight some recent alpha opportunities, the broader
point here is more profound.
The very next day, Labor reported that the core producer price index rose 0.4 %
for the month and 2.2 % year - on - year, which pushed up the
yield on the 10 - year another basis
point, to 2.92 %.
Consensus is
for no change and I would agree with that
for the Aussie dollar has been stable and the 2/10
yield curve is a healthy 135 basis
points positive slope.
FRA: Will interest rates tend to rise this year necessarily at different
points in the
yield curve
for yield curves across the major economies?
So I don't think that they're willing at this
point in time until they really see wage inflation
for whatever reason they're going to hold real
yields at neutral, zero.
John Seagrim of CLSA
points out that despite having
yielded very little
for a very long time, Japanese Government Bonds (JGBs) have been surprise performers in 2016.
Share price and
yield are not what I'm excited about when looking
for great businesses, but they of course help determine great entry
points.
Toronto — Dominion Bank has lifted its posted rate
for five - year fixed mortgages by 45 basis
points to 5.59 % as government bond
yields hit their highest levels since 2011.
With the outlook
for growth in the euro area remaining fairly subdued, German bond
yields are now below those in the US after having been around 30 basis
points higher
for much of the past year.
The spread between 10 - year Australian and US bond
yields has fluctuated around 150 basis
points over the past few months, which is around 50 basis
points above its average
for the past few years (Graph 54).
Yields have been in a bear market
for rather a long time now, though a grudging one, judging by its protracted trajectory, though I'll grant the nearly 100 basis
point gains in 10 years since 2.05 percent as recently as September is rather stellar.
The Price Value of a Basis
Point (PVBP) is a measure of the absolute value of the change in price of a bond for a one basis point change in y
Point (PVBP) is a measure of the absolute value of the change in price of a bond
for a one basis
point change in y
point change in
yield.