Sentences with phrase «zero yields on bonds»

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

Not exact matches

The central bank said it will purchase Japanese government bonds so that the yield on the 10 - year note will remain at around zero percent.

For the first time ever, Switzerland's entire stock of bonds has fallen below zero, with the 50 - year yield plummeting to negative 0.03 percent on July 5.

Meanwhile, the yield on Switzerland's 50 - year government bond fell below zero for the first time on Tuesday, according to Reuters.

For example, it does not include euro bonds («reverse Yankees») that are hot in Europe, where junk bond yields are at a ludicrously low 2.35 % on average, and the high - grade yield is just above zero.

This includes negative real interest rates, which drop the yield on a government bond below zero.

For example, in a world where short - term interest rates are zero, Wall Street acts as if a 2 % dividend yield on equities, or a 5 % junk bond yield is enough to make these securities appropriate even for investors with short horizons, not factoring in any compensation for risk or likely capital losses.

German 10 - year bond yields fell below zero on June 14 for the first time since the creation of the euro.

There are more than just one reason for the higher yields on zero - coupon bonds than coupon bonds.

Investors are willing to accept lower returns on bonds in exchange for safety, but near - zero interest rate levels have traditional bondholders seeking yield elsewhere.

Yields on zero coupon bonds are a function of the purchase price, the par value and the time remaining until maturity.

This makes the yield to maturity easier to calculate for zero coupon bonds, because there are no coupon payments to reinvest, making it equivalent to the normal rate of return on the bond.

This means the government is financing itself at close to zero cost for its short term borrowing and, further out on the curve, the cost of financing does not go up by much; as the yield - to - worst on the S&P / BGCantor 7 - 10 Year U.S. Treasury Bond Index is now at 1.48 %.

On the downside, high - yield bonds are riskier and some of the companies that issue them are that much more likely to go to zero than a less risky issuer.

While the yield of the S&P Current 10 - Year Japan Sovereign Bond Index continued to hover around zero, the yields of U.S. Treasuries were trending higher this quarter on the back of the rising - interest - rate environment.

Real yields (the yield after accounting for inflation) on government bonds have risen recently, but are still around zero.

Historically, municipal bonds would yield roughly what Treasuries were yielding on a tax adjusted basis but bargains presented themselves in 2009, especially in light of the unprecedented near zero yields we saw on Treasuries.

The Paradox of the Zero Bound Subpar Economic Recovery Gets Premium Market Valuation Wall Street Earnings Expectations Ignore Economic Divergences The Great Divergence An Update on International Market Valuations Business Cycles, Election Cycles, and Potential Risks An Update on Valuations and Forward Earnings Assumptions Bond Yields, Earnings Yields, and Inflation A View from the NBER Recession Indicators Three Observations on Third Quarter Earnings Forward Looking Measures Still Don't Provide Evidence for a V - Shaped Recovery This Earnings Season, Watch Sales Forward Earnings Imply a Return to Near - Record Profit Margins Without Phoenix Stocks, Volume Continues to Contract Is the Job Market Ready for a Recovery?