(Bloomberg) — The U.S. rates market was hammered anew on Monday, with a selloff driving yields on short-dated Treasuries to one of their biggest daily jumps of the past decade after Federal Reserve Chair Jerome Powell said he’s willing to enact larger hikes if needed to fight inflation. The central bank chief’s hawkish tone led […]
Read More(Bloomberg) — As Wall Street starts to tally the market damage triggered by Russia’s invasion of Ukraine, a big bond fund run by Franklin Resources Inc. is emerging as an early loser. The Western Asset Core Plus Bond Fund, with $37 billion of U.S. mutual fund assets, declined more than 8% this year and about […]
Read More(Bloomberg) — To many on Wall Street, the painful selloff that’s been racing through the Treasury market this month is only the opening act. On Wednesday, Federal Reserve Chair Jerome Powell’s hawkish tone added fuel to the rout after he said the bank is poised to start raising interest rates in March, sending two-year Treasury […]
Read More(Bloomberg) — Global bond markets came under pressure Monday after Treasuries sold off on Friday on increased speculation of a March rate hike by the Federal Reserve. Germany’s 10-year borrowing rates jumped to within three basis points of turning positive for the first time in almost three years, while Australia’s benchmark yield climbed seven basis […]
Read MoreTreasury building in Washington, D.C. Erin Scott/Bloomberg There’s a well-known adage, often mistakenly described as a Chinese curse: “May you live in interesting times.” This certainty rings true for bond investors who, having witnessed a tumultuous 2021, saw a steep selloff in bonds in the first few days of January. While it is easy to […]
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) — Ray Dalio renewed his warning about holding cash and bonds on Tuesday amid the ongoing, pandemic-fueled increase in debt creation and monetization in the U.S. “This printing of money and buying of debt assets has driven interest rates so low that cash and bonds are stupid to own,” he wrote in a post […]
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 MoreSigns of trouble are cropping up in the world’s largest, most liquid government-securities market, B. of A. rates strategists say. Large moves on very low volumes of Treasury inflation-protected securities, or TIPS, breakevens, a gauge of U.S. inflation expectations, are among the indications that the rates market is unsettled, the strategists say. “Collapsed” depth in […]
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 […]
Read MoreAs the cost of bacon and other goods sizzles, more people want to protect their savings from getting burned to a crisp by inflation. One simple move, which I wrote about this past summer as well, involves setting aside some money in inflation-protected savings bonds, known as I Bonds. You’re likely going to hear even […]
Read More(Bloomberg) — U.S. Treasuries are on the cusp of a major shift in the supply-demand dynamic that’s shaped the market for more than a year, potentially heralding opportunities for traders lamenting an extended stretch of limited volatility. First, supply: Even if Congress passes infrastructure spending, Treasury auctions have grown bigger than they need to be, […]
Read MoreWith stocks losing steam over the last couple of weeks, one strategist says now might be a great time to buy ‘wish list’ stocks like these 4 names.
Read More