Industrial production and capacity utilization are considered coincident indicators, as changes in them usually accompany changes in GDP and overall economic activity.
The total in November of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a monthly net TIC outflow of $16.6 billion.
YTM (yield-to-maturity, or simply yield) for government bonds (risk free securities) had moved up since middle of 2013 and has come down since the beginning of 2014.
The Mortgage Bankers Association’s (the MBA’s) Purchase Applications Index is a weekly measurement of home loan applications.
The ten-year bond yield fell off 8 basis points last week, and TBAs followed. Bonds had been benefiting from the “risk-off” trade.
Both the Producer Price Index (or PPI) and the Consumer Price Index (or CPI) are headline inflation numbers issued by the Bureau of Labor Statistics (or BLS).
One of the most important highlights this week for bond markets will be the Treasury International Capital data release that tracks the inflow and outflow of funds from the United States.
A lower credit rating means higher risk, and therefore, higher yield as investors look for the premium to take the risk and vice versa.
According to the U.S. Census Bureau release on Tuesday, February 11, December 2013 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustments, were $442.4 billion.
Bonds would have ordinarily rallied on weak data, but the lack of bad news out of emerging markets may have pulled some of the flight to safety money out of bonds.
Fed’s “tapering” policy for its bond purchases starting early 2014 has caused long-term interest rates to rise steeply.
What is the NFIB Small Business Optimism Index? The Index is a monthly survey conducted by the NFIB of its members that gauges small business sentiment by ten key metrics.
With Fed’s tapering initiatives in progress in the U.S., interest rates are expected to rise as the mass bond-buying program loses heat.
The BIE was created to measure businesses’ inflationary sentiments for the year ahead. A monthly survey, it gives an estimate of inflation expectations and uncertainty from the perspective of individual firms.
Know why the default rate is a consideration for investors in municipal, investment-grade corporate, high-yield, and emerging market bonds, but it’s not relevant for U.S. Treasuries.
High-yield ETFs will have lower duration than Treasury ETFs, as their portfolio comprises high-yield, shorter maturity securities as compared to the Treasury ETFs.
On Tuesday, February 11, Janet Yellen gave her first semi-annual monetary policy testimony before Senate Banking Committee.
Both investment-grade loans and Treasuries have a number of ETFs tracking them. The iShares series tracks both asset classes.
There are many ETFs that track the high yield bond market. The prominent ones are HYG and JNK, which collectively hold ~95% of the high yield bond ETF market share, and PHB.
Default rate is a key metric of credit risk and is defined as the risk that the counterparty will default on its financial obligations.