(Bloomberg) — After another wild week in global money markets, traders are betting big on the biggest regime shift in Europe in years: the end of the negative interest-rate era before 2022 is over. Fueled by a flurry of hawkish monetary signals over the past week, the interest-rate swaps market now projects the European Central […]
Read More(Bloomberg) — The relentless selloff in Treasuries continued Tuesday, threatening to mark a resolute end to the four-decade bull run in bonds, at least according to one key metric. Benchmark 10-year yields rose above 2.80% to the highest since December 2018 as traders bet the Federal Reserve will ramp up the pace of tightening to […]
Read More(Bloomberg) — Any hope that the Treasury market’s biggest quarterly loss had priced in a worst-case scenario for inflation and Federal Reserve rate hikes is looking increasingly illusory. No sooner had the first quarter ended with a 5.6% loss for U.S. government bonds, the March employment data included a bigger-than-expected drop in the unemployment rate […]
Read More(Bloomberg) — Treasuries slumped anew to send a widely-watched part of the U.S. yield curve to its first inversion in 16 years. The curve is flattening as investors bet the Federal Reserve will tighten policy rapidly enough to risk a sustained slowdown in growth. U.S. five-year yields climbed nine basis points to 2.63%, rising above […]
Read More(Bloomberg) — Bond traders are virtually certain the Federal Reserve will raise interest rates by a quarter percentage point on Wednesday. What they’re watching for is where the central bank is heading after that. Two-year Treasury yields, which are highly sensitive to monetary policy changes, have already climbed to the highest since September 2019 with […]
Read More(Bloomberg) — After a tumultuous week of big yield swings and heightened volatility in the U.S. Treasury market, investors are bracing for another hot inflation report, while the war in Ukraine increasingly casts a pall over Europe and the global economy. Russia’s Feb. 24 invasion of Ukraine began to rewrite the script for U.S. bond […]
Read More(Bloomberg) — Six weeks into 2022 and it’s shaping up to be a grim year for fixed-income investors facing rising interest rates around the world. With the Federal Reserve preparing to hike rates next month after a bigger-than-expected jump in U.S. consumer prices, Treasuries have endured their worst start to a year in more than […]
Read More(Bloomberg) — The Treasury yield curve flattened to the lowest level in over a year on Monday as the prospect of a super-sized Federal Reserve rate increase in March gained traction, weighing disproportionately on shorter-dated tenors. Two-year U.S. yields climbed 3 basis points to about 1.2% after Raphael Bostic, the president of the Fed’s Atlanta […]
Read More(Bloomberg) — Treasury yields are quickly moving higher as investor expectations grow that the Federal Reserve will raise interest rates in March and follow up with further moves throughout the year. The 10-year U.S. Treasury yield has risen almost 30 basis points since the end of 2021 as market participants begin to price rate hikes […]
Read More“Fallen angel” corporate bonds are less sensitive to interest-rate changes brought on by the Fed. Getty Images For those looking for a safe investment, Treasury bonds aren’t the right bet. Instead, Bank of America advises considering a class of corporate bonds with a particularly bright outlook. Treasury bonds have had a rough ride as of […]
Read More(Bloomberg) — A valuation case that has fueled a near-tripling in the Nasdaq 100 Index is coming under increasing pressure, with surging interest rates threatening to dent equities’ there-is-no-alternative argument. While the stock-bond valuation picture still leans toward shares from a longer-term historical lens, it is currently being clouded by the biggest weekly run-up in […]
Read More(Bloomberg) — Treasury investors are losing more money than they have in four decades, once inflation is taken into account. And if markets are right, they’re unlikely to come out ahead for years. The federal government’s debt has already lost about 2% outright over the past year as the Federal Reserve started removing pandemic-era stimulus […]
Read MoreFederal Reserve Board Chairman Jerome Powell. Brendan Smialowski / AFP via Getty Images The bond market is signaling that the Federal Reserve will soon have to abruptly lift interest rates, and that such a move could damage economic demand. Changes in bond yields suggest that this year’s surge in inflation has stuck around long enough […]
Read More(Bloomberg) — Global bond yields are surging after a bigger-than-expected jump in U.S. inflation revived concerns that central banks will be forced to start raising interest rates sooner than traders anticipate. Treasuries tumbled Wednesday in an abrupt reversal for the world’s biggest bond market, where yields had declined after Federal Reserve Chair Jerome Powell last […]
Read MoreThe personal finance community has been buzzing this week about a little-known type of government-backed savings bond paying as much as the stock market usually pays over the long-term: A mouth-watering 7.12% that’s pretty much as safe as anything out there. They’re called Series I savings bonds and the government sets the rate of interest […]
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