Bright start for bonds to new year eases market pressures
1 year, 11 months ago

Bright start for bonds to new year eases market pressures

Live Mint  

Another strong week for the U.S. bond market is giving investors increasing hope that they can turn the page on a brutal 2022. Last week’s consumer-price index report was then also encouraging, hinting at a continued slowdown in the type of services inflation that Fed officials have spotlighted as particularly important. Last year, the S&P 500 fell over 19%, while the tech-heavy Nasdaq Composite dropped 33% in large part because skyrocketing yields meant investors could get a much-improved, risk-free return by simply holding Treasurys to maturity. Even so, some analysts say this could lead to higher yields, because current bond prices reflect bets that the Fed will cut rates later this year. Fed officials might “take the approach that, ‘OK, this has definitely been encouraging on the inflation side, but we’re not convinced that this is moving sustainably lower,’ " Mr. Griffiths said.

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History of this topic

Treasury Yields Edge Higher With Long-Term Debt Out of Favor
1 day, 17 hours ago

Treasury Yields Edge Higher With Long-Term Debt Out of Favor

Live Mint  

-- Treasury yields rose on Monday as traders continue to see a slower pace of interest rate reductions by the Federal Reserve next year and the potential worsening of country’s fiscal backdrop under President-elect Donald Trump’s administration. The moves Monday built on a rise in yields last week following US central bank officials latest quarterly projections — dubbed the dot …

Why everyone wants to lend to weak companies
3 weeks, 5 days ago

Why everyone wants to lend to weak companies

Live Mint  

Credit investors often talk in euphemisms. The safest bonds, with the highest credit ratings and hence the lowest yields, are almost always referred to as “high-grade" rather than “low-yield". Indeed, on November 24th the spread enjoyed by investors in American high-yield bonds over that enjoyed by investors in Treasury bonds fell below the spread on fixed-rate residential mortgages for the …

US yields rise, weak demand for 20-year auction
1 month ago

US yields rise, weak demand for 20-year auction

Live Mint  

By Karen Brettell and Tatiana Bautzer NEW YORK, Nov 20 - U.S. Treasury yields moved higher on Wednesday as the Treasury Department saw weak demand in an auction and traders assessed when the Federal Reserve may pause its interest rate cutting cycle as U.S. economic growth remains above expectations. Investors correctly betting that Republican Donald Trump would win the U.S. …

India bond yields seen marginally lower as Fed rate cut bets improve
4 months ago

India bond yields seen marginally lower as Fed rate cut bets improve

Hindustan Times  

By Dharamraj Dhutia India bond yields seen marginally lower as Fed rate cut bets improve MUMBAI, - Indian government bond yields are expected to trend lower in early trading on Wednesday, tracking a fall in U.S. Treasury yields amid rising prospects of a deeper interest rate cut next month. "The odds of a larger than 25 basis point cut by …

Treasuries Surge as Traders Bet Big on a Fed Rescue Mode
4 months, 2 weeks ago

Treasuries Surge as Traders Bet Big on a Fed Rescue Mode

Live Mint  

Bond traders are piling into bets that the US economy is on the verge of deteriorating so quickly that the Federal Reserve will need to start easing monetary policy aggressively to head off a recession. “Treasuries are a good buy here because I do think the economy will continue to slow.” Bond traders have repeatedly misjudged where interest rates have …

T-bond move seen safeguarding financial stability
5 months, 3 weeks ago

T-bond move seen safeguarding financial stability

China Daily  

China Daily| Updated :2024-07-04 The People's Bank of China, the country's central bank, may soon sell borrowed long-term Chinese government bonds, a move that would help safeguard financial stability and add a new tool of liquidity management, market experts said. The move, which is considered unusual for the PBOC, has attracted attention as some market analysts said this could even …

T-bond move seen safeguarding financial stability
5 months, 3 weeks ago

T-bond move seen safeguarding financial stability

China Daily  

This undated file photo shows an exterior view of the People's Bank of China in Beijing, capital of China. The People's Bank of China, the country's central bank, may soon sell borrowed long-term Chinese government bonds, a move that would help safeguard financial stability and add a new tool of liquidity management, market experts said. The move, which is considered …

Stocks get hit as war jitters fuel rush to bonds: Markets Wrap
8 months, 1 week ago

Stocks get hit as war jitters fuel rush to bonds: Markets Wrap

Live Mint  

The financial world was roiled by a flare-up in geopolitical risks that sent stocks sliding — while spurring a flight to the safest corners of the market such as bonds and the dollar. “Investors were lighting up on risk exposure ahead of the weekend, fearing risk assets could gap lower should something happen.” Israel-Iran Tensions Mount Pressure A direct confrontation …

Even With Fewer Rate Cuts, You Should Still Buy Bonds
10 months, 1 week ago

Even With Fewer Rate Cuts, You Should Still Buy Bonds

Live Mint  

Whether investors expect too many interest-rate cuts or too few depends on what time frame you are looking at. Both stocks and bonds sold off earlier this week after the latest U.S. consumer-price figures sparked fears that central banks across the developed world may struggle to win the “last mile" of the inflation battle. Only two weeks ago, they were …

Stock market today: Wall Street skids after inflation remains stubbornly high
10 months, 1 week ago

Stock market today: Wall Street skids after inflation remains stubbornly high

Hindustan Times  

NEW YORK — Stocks fell sharply after disappointing data on inflation made investors confront the bitter possibility that interest rates will stay high for months longer than they were hoping. The worse-than-expected inflation report may have put the final nail into hopes that the Federal Reserve could deliver its first interest rate cut in March. Stocks of smaller companies fell …

Markets Moving in Lockstep Threaten to Make for a Trying 2024
11 months, 2 weeks ago

Markets Moving in Lockstep Threaten to Make for a Trying 2024

Live Mint  

Some investors hold that as goes January, so goes the year. Stocks plunged on Tuesday, the first trading day, as bond yields rose, amid concern that last year’s excitement about impending rate cuts had gone too far. Higher bond yields were again bad for stocks, the pattern of the past couple of months, as higher potential for profit wasn’t enough …

Bond yields tumble as bets on rate cuts mount amid fresh signs of easing inflation
1 year ago

Bond yields tumble as bets on rate cuts mount amid fresh signs of easing inflation

Daily Mail  

Bond yields fell yesterday as fresh signs of easing inflation pressure threw the spotlight onto central banks ahead of key interest rate decisions. UK figures showed a slowdown in wage growth while in America inflation dipped to 3.1 per cent. Bond slump: UK figures showed a slowdown in wage growth while in America inflation dipped to 3.1% Central banks have …

Decoding the (Almost) 5% 10-Year Treasury Yield
1 year, 1 month ago

Decoding the (Almost) 5% 10-Year Treasury Yield

Live Mint  

The yield on the benchmark 10-year U.S. Treasury note touched 5% for the first time in 16 years last week, spurring debate about whether it has peaked or just taken another step in its long and disruptive climb. Here is a look at how yields got here and their possible paths forward: The Fed sets the tone Yields on Treasurys …

Why are bond yields surging around the global markets? - Explained
1 year, 2 months ago

Why are bond yields surging around the global markets? - Explained

Live Mint  

Over the past six months, the international bonds yield has been on a haywire. Sustained expectations of inflation are likely to keep yields above this conventional range, potentially detrimental to economic growth and the stock market, as both household and corporate spending face constraints. The prevailing high bond yields are primarily driven by the market demands for premiums when investing …

Why are global bond yields rising?
1 year, 4 months ago

Why are global bond yields rising?

Live Mint  

Global bond yields are flaring up to the levels unseen in years, drawing support from strong macroeconomic data that makes a case for continuing with the monetary tightening policy through interest rate hikes. The US treasury yields have climbed almost 40 bps month-to-date amid rising bets that interest rates will remain elevated for longer. However, while the 10-year US yield …

As Bond Market Turbulence Eases, Companies Borrow Again
1 year, 8 months ago

As Bond Market Turbulence Eases, Companies Borrow Again

Live Mint  

Trading in U.S. government bonds has become much less volatile in recent weeks, helping fuel a rebound in corporate borrowing after a chaotic stretch that followed Silicon Valley Bank’s collapse in early March. Daily moves in the 2-year Treasury yield averaged 0.22 percentage point from March 9, when the run on SVB started, through March 27, the day that the …

Bond yields little changed after recent fall, Friday’s debt sale eyed
2 years, 1 month ago

Bond yields little changed after recent fall, Friday’s debt sale eyed

Live Mint  

Indian government bond yields ended little changed on Thursday, amid consolidation after the recent fall, while traders now await a fresh supply of debt via weekly auction on Friday. The benchmark Indian 10-year government bond yield ended at 7.2808%, after closing at 7.2736% on Wednesday. Bond yields eased earlier in the session, following a drop in U.S. yields and oil …

3-Year Bond Yields Lowest In Over A Month: What It Means, What Investors Should Do
2 years, 5 months ago

3-Year Bond Yields Lowest In Over A Month: What It Means, What Investors Should Do

News 18  

India’s benchmark 10-year bond yield on Monday fell to its lowest level since May 27 to 7.355 per cent. A market expert said the ease in bond yield is a positive news for the economy and the markets as the rising bond yields raises the companies’ cost of borrowing. Motilal Oswal said that if the bond yields go up then …

Surge in bond yields could drive growth off track: RBI
3 years, 9 months ago

Surge in bond yields could drive growth off track: RBI

Live Mint  

The Reserve Bank of India on Friday warned that rising bond yields could undermine the fragile global economic recovery, rendering most economies unable to tolerate high interest rates. In its latest currency and finance bulletin, RBI also pointed to the stubbornly high yields in the Indian bond market, cautioning that rising yields could prompt central banks to boost bond-buying. The …

Powell: Higher inflation temporary, no rate hikes in sight
3 years, 9 months ago

Powell: Higher inflation temporary, no rate hikes in sight

Associated Press  

WASHINGTON — Federal Reserve Chair Jerome Powell suggested Thursday that inflation will pick up in the coming months but that it would likely prove temporary and not enough for the Fed to alter its record-low interest rate policies. Stock investors, too, dumped shares in the midst of Powell’s remarks, in which he suggested that the Fed would need to see …

Long-term bonds hit hard after Georgia Senate runoffs
3 years, 11 months ago

Long-term bonds hit hard after Georgia Senate runoffs

Live Mint  

Democratic victories in the Georgia Senate races this week have spurred investors to bet on a higher spending government that will bring growth and inflation to the U.S. economy. “Inflation expectations have been going up significantly just this week,” said William Dinning, chief investment officer of Waverton Investment Management, the U.K.-based fund manager formerly known as J.O. “There is upward …

Bond traders’ hot tip for next year? Buy stocks
4 years ago

Bond traders’ hot tip for next year? Buy stocks

Live Mint  

There’s always been something of a rivalry between traders in stocks and bonds. “What we’re telling our investors is that central banks aren’t going to be raising interest rates, so there’s not going to be a lot of volatility in the front end,” Maroutsos said. You set yourself up for an OK return for the next 12 months, and if …

Bonds were a safety net when stocks fell, Investors fret they aren’t anymore
4 years, 2 months ago

Bonds were a safety net when stocks fell, Investors fret they aren’t anymore

Live Mint  

A reliable link between stocks and government bonds that defined a popular investment strategy for decades has broken this year. March’s falling bond values “added insult to injury instead of helping to balance a multiasset portfolio,” said Stéphane Monier, chief investment officer at Lombard Odier in Switzerland. While 10-year Treasury yields haven’t moved much up or down this summer, the …

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