Posted October 30, 2024 In the latest Macro Watch video, we explore why U.S. bond yields are rising, even as the Fed cuts rates. Former President Trump’s recent gains in the polls are fueling expectations of significant policy shifts that could drive inflation and bond yields higher. As ...
A bond yield is thereturnan investor realizes on abond. Put simply, a bond yield is the return on the capital invested by an investor. Bond yields are different from bond prices—both of which share an inverse relationship. The yield matches the bond's coupon rate when the bond is issued...
Why Are Bond Yields Going So Low?
From August of last year to February of this, the T-bond market saw a little correction, with rising yields and deflating prices. But since early March the bulls have taken back some of their lost territory. Are they going to keep buying until this bond’s yields is once again below 1%?
If you’re still hoping/wishing/praying that U.S. Treasury yields fly north of 4% (like many process-less Old Wall pundits were predicting last summer) we wish y
Bond yields and bond prices always move in opposite directions, so bond prices will rise. Think about it this way. If rates fall to 2.5% then already-existing bonds that still pay the legacy rate of 5% are now worth more, and so investors will bid their price up....
It’s a conundrum: The Bank of Japan (BOJ) is widely expected to ease policy further at its next meeting later this month, but the country’s longer-end bond yields have climbed to six-month highs. Japan’s benchmark 10-year government bond yield climbed to as high as negative 0.003...
“Yields sustainably above 5% for a longer period of time will act as a weight on the market in terms of how you value risk compensation,” he said. “Investors are going to ask for more compensation to take risk and when you see liquidity evaporate more and more, that’s what’s ...
A rather strange phenomenon made its way to the multi-trillion-dollar bond space recently; negative bond yields. In order to set the scene, let’s remember that the overarching purpose of investing in the financial markets is to make money. After all, this is why you are risking your hard...
low bond yields also encouraged many investors to put their money elsewhere in search of higher returns. Some bought longer-term bonds, some invested overseas and others poured their money into the equity markets.Flash forward to today: The economy is on a roll, with growth in the nation's ...