Higher interest rates, lower bond prices–it's a new world
It’s a bond rout. On December 8, prices for U.S. Treasuries plunged and yields on the benchmark 10-year U.S. Treasury hit a six-month high of 3.33%. That’s a full percentage point higher than the October low. And it’s a shocking 0.76 percentage points above the yield...Bond prices are down and yields up–and the trend looks like it could go on for a while
It’s not just happening to U.S. Treasuries. Bond prices are plunging and yields soaring for developed economy bonds across the globe. The benchmark 10-year yields on government debt in the United States, Germany, the United Kingdom and Japan are all up by 20 to 25% in...Prices for 7- to 10-year Treasuries fall–if that's a trend expect money to start flowing back into stocks from bonds
For most of 2010 Treasury bonds have been a very good investment. Sure, they haven’t paid much in interest but with yields falling, Treasury bond prices have been climbing. And so the gain on the iShares Barclay 7-10 Year Treasury ETF, which tracks the price of seven...Mr. Bond turns bearish on bonds
Mr. Bond, Pimco’s Bill Gross, doesn’t like bonds so much anymore. Gross, who manages the $200 billion Total Return Fund at Pacific Investment Management (Pimco) told CNBC on December 7 that Treasuries are over-valued given the odds that inflation and interest rates...Bonds killed stocks in the last 10 years–but how about the next 10?
Okay, we get it. This was “The Lost Decade” for stock investors. Yes, since January 2000 the Standard & Poor’s 500 Stock Index is down, as of December 10, a painful 11%. We know this. We feel it in our portfolios. But what should we do about it? I suspect that the...Stocks and bonds take away different messsage from the Fed
Bonds and shares of financial companies didn’t like what they heard from the Federal Reserve Wednesday November 4 at 2:15. Investors and traders in general, on the other hand, were relieved that the Federal Reserve signaled that interest rate policy wasn’t about to...Bad day at the bond auction drives interest rates higher; a sign of things to come?
What if they gave a Treasury bond auction and nobody came? “Nobody” is highly unlikely but lower demand isn’t. That’s what happened at Thursday’s auction for $12 billion in 30-year Treasury bonds. With demand lighter than expected yields...Buyers are snapping up Treasuries–that's usually not a good sign for stocks
Low yields on U.S. Treasury bills, notes, and bonds are good for stocks. They make bonds look less attractive and stocks relatively more so. But falling yields that are caused by buyers flocking to Treasuries aren’t a good sign. The decline in yields then is a...Jim’s Daily Email Alerts:
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