volatility Shocksyield curveWe characterize the joint dynamics of a large number of macroeconomic variables and Treasury yields in a dynamic factor model. We use this framework to identifyMoench, EmanuelSoroosh, Soofi SiavashSocial Science Electronic Publishing...
Treasury yields are inversely related to Treasury prices, and yields are often used to price and trade fixed-income securities including Treasuries. Treasury securities with different maturities have different yields; longer-term Treasury securities usually have higher yields than shorter-term ones. Treasu...
Andrew Flowers
There are other long-term investments with the potential for higher yields and more liquidity. However, investors can leverage T-bonds to preserve the wealth they’ve already created. “There’s consistent income potential with Treasury bonds and your investment likely won’t decrease if the stock...
Specifically, investors turn to utilities in a low interest rate environment because the companies’ dividends can be greater than Treasury yields. On average over the last 15 years, the S&P 500 utilities sector has had a dividend yield of 3.7%, comfortably above 2.5% for the U.S. Government...
Treasury yields have tumbled and markets now reckon the Federal Reserve will begin cutting interest rates in the summer. Share prices of banks in Europe and Japan have plunged, too. Credit Suisse, which faces other woes, saw its stock fall by 24% on March 15th and on March 16th it sought...
Consequently, the U.S. Treasury yields are a great instrument to measure against other countries and corporate debt, but not in absolute terms. Those government bonds will reflect inflation expectations but could also be severely capped if the generalized risk on other issuers increases....
Because 10-year Treasury yields are so closely scrutinized, knowledge of its historical patterns is integral to understanding how today's yields fare as compared to historical rates. Below is a chart of the yields going back a decade.
Analyzing this chart may sound daunting, but Americans can use these estimates to infer how long the Fed plans to keep interest rates high — moves that are boosting yields on savings accounts and keeping borrowing costs expensive on almost any type of product, from a credit card to a home ...
And here, I am not just talking about a modest rise. Rather, bond yields are now at their highest levels in 16 years, and we could soon be approaching a benchmark 10-year Treasury note yield with a “5” handle — ouch! Yet, a critical question here remains, and that is… Why are...