But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
The Search For Yield Continues Due To Low Real Treasury Yields
With core inflation at 1.6% and the ten-year Treasury yielding around 1.8%, low real Treasury yields mean you’re hardly compensated for inflation.
Treasury yields have dipped over time. A bond’s coupon, yield, and price interrelate.
Investment-grade corporate bonds are relatively safe. If you want a higher yield than Treasuries offer, consider investment-grade corporate bonds.
US Treasuries provide safety, but they’re demanding a huge premium right now.
The US Department of the Treasury conducted the weekly auction for four-week, or one-month, Treasury bills (BIL) (MINT), or T-bills, on January 21.
The US Department of the Treasury auctioned 13-week, or three-month, Treasury bills (BIL) (MINT), or T-bills, worth $24 billion on January 20.
The US Department of the Treasury held the weekly 26-week, or six-month, Treasury bills (BIL) (MINT), or T-bills, auction on January 20.
For the US, the manufacturing was 53.7 in January 2015—according Markit’s “flash” estimate. This was lower than the 53.9 reading in December.
Out of the three indices, the Leading Economic Index is the most important. It intends to indicate what’s going to happen in the future.
Existing home sales are computed and reported monthly by the NAR. The December 2014 report showed that existing home sales increased 2.4%.
In the US, housing starts rose 4.4% to a 1.089 million pace in December 2014. For November, the pace was revised to 1.043 million.
Treasury Inflation-Protected Securities, or TIPS, protect the value of debt securities from eroding due to inflation. A TIPS principal is indexed to the CPI.
During the week, the primary mover for Treasury yields was the European Central Bank’s, or ECB, stimulus decision. The purchase will begin in March 2015.
China is the largest foreign holder of US Treasuries, followed by Belgium, Brazil (EWZ), Switzerland, and the United Kingdom.
The proposed creation of the QPIBs has another purpose. The bonds would help provide a level playing field for public-private partnerships.
The new QPIBs should serve as a permanent lower-cost financing tool. The new bonds aim to increase private participation in building the nation’s public infrastructure.
The Obama administration took a big step that should give the US municipal bond market good momentum. The proposed bonds are called QPIBs.
In 2014, the municipal bond market recovered from its stream of bad news. Risk-averse bond investors’ preference tilted towards municipal bonds.
Municipal bonds are an attractive investment choice for investors seeking a steady stream of tax-free income. They’re also a safer bet than corporate bonds.
News about the proposed QPIBs primarily generated a positive response. The Obama administration proposed new municipal bonds (MUB) (TFI).