RECENT Fixed Income ETFs RESEARCH
The ten-year Treasury (IEF) is currently yielding 2.0%, which is much lower than its long-term average of ~4.5%.
Equities in the United States rose for most of the week ended October 2 ahead of the non-farm payrolls report for September. They rose in hopes that moderately strong job additions would continue.
All three US equity indices that we review in this weekly series fell in the week ended September 25—the second successive week in which they recorded a fall.
The exact timing of a rate hike isn’t as important as making sure your portfolio is prepared for an impending rate regime change where rates are expected to rise gradually and remain low for long.
US stocks didn’t have a great start last week. Reports emanating from China drove US markets down sharply, but they rebounded the next day when Microsoft (MSFT) helped them bounce back.
All three US equity indices that we review in this weekly series rebounded in the week ended August 28, 2015, after a disastrous previous week.
Commodities prices, especially for copper, fell in the week ended August 21. The broad equity market also became wary of slumping commodities prices and took a tumble.
For corporates issuing high-grade bonds, the yield curve getting flatter can lead to issuance of longer-duration bonds.
The value of the Chinese yuan was reduced against the US dollar three time last week—on three successive days—by China’s central bank, the People’s Bank of China.
Global bond yields are very low, currently. The ten-year Treasury (IEF) is currently yielding 2.2%, which is much lower than its long-term average of ~4.5%.
All of the three US equity indices that we review in this weekly series fell in the week to August 7, 2015. The S&P 500 Index fell 1.20%.
The US economy grew by 2.3% in 2Q15, according to a Bureau of Economic Analysis advance estimate. Although the rate was lower than expected by some forecasters, it still showed strong economic growth.
Not all corporate results disappointed last week. Amazon’s (AMZN) stock surged after it posted a surprise profit in 2Q15.
A fall in the price of commodities lowered the outlook on inflation in the United States. This fueled gains for investment-grade bonds in the week ended July 24.
The ten-year German and French government bonds are trading at below 1%, while the ten-year gilt is yielding 2%. The ten-year US Treasury is currently trading at 2.3%.
Carl Icahn believes that another 2007-like crisis could be in the making. He thinks asset management companies like BlackRock are “extremely dangerous.”
The three US equity indices that we review in this weekly series rose in the week ending July 17. Apart from economic indicators, markets also focused on corporate earnings.
US economic indicators drove movement in investment-grade bond yields last week. A rise in gasoline prices led to an increase in US consumer prices in June.
A sharp fall in the Chinese stock market had its repercussions on US equities, which fell in response. But the losses were reduced after Chinese shares rose on the last two trading days of the week ended July 10.
Greece’s fate in the Eurozone drove investment-grade bonds last week. A safe-haven demand for most of the week pushed yields down. But investment-grade bonds saw yields rise week-over-week.