Why Bond Yields Were Unaffected by Trump News
US Treasuries (SCHO) rallied all through the previous week supported by heavy safe-haven inflows into US bonds.
US bond markets are trading on the expectation of an interest rate hike by the US Federal Reserve in June 2017. Last week, bond yields extended their slides.
Loretta J. Mester, president of the Federal Reserve Bank of Cleveland, said she doesn’t want the Fed to fall behind the curve.
Apple is not the only major U.S. corporation to issue a green bond.
European bonds (BWX) started showing signs of celebration late May 5 as opinion polls pointed toward an Emmanuel Macron win in the French presidential election.
Economic indicators that have been reported since the last FOMC meeting were mixed. We saw March employment data disappoint markets (MTUM).
In its May statement, the Fed seems to have gone the extra mile to explain the slowdown in the first quarter.
Demand for fixed income securities will likely be subdued because of excess supply this week, which would mean additional support for bond yields.
The Fed has started the rate normalization process only recently and has a long way to go before the rates come back to pre-Lehman-collapse levels.
BUTCHER: What should investors be looking for in 2017? VAN ECK: A key question is whether Congress will fix the U.S.’s long-term debt problem. If it doesn’t, our entitlement systems…
BUTCHER: How do you expect the Trump administration to affect your outlook? VAN ECK: As an investor, you have to filter out a lot of the noise and just look…
JAN VAN ECK: The second shift was in interest rates. A year ago, Japan started moving toward negative rates. It was the height of central banks’ love affair with using…
The CBO expects the budget deficit to remain below 3% of GDP until 2019.
Donald Trump’s corporate tax plans have the potential to infuse immense liquidity in the economy.
In this part of the series, we’ll discuss why negative interest rates might not be an ideal scenario for the US.
Higher inflation erodes the value of future coupon payments. Inflation has more of a negative effect on bonds with later maturities.
High-yield bonds gained popularity due to higher yields compared to Treasury bonds, whose yields were being pushed down by the Fed’s interest rate policy.
The demand for US investment-grade corporate bonds was driven by higher yields generated by bonds in the midst of low interest rates.
IGEM gives you good exposure to investment-grade emerging market bonds. They’re less risky and add diversification benefits to your portfolio.
Emerging market economies have seen improved GDP growth in 2016, while developed markets are struggling to grow.