Search Results for: bond yield

Net Positioning Among Asset Managers in Treasury Futures Contracts Investors expect higher long-term bond yields as the economy improves in the future. Image: Financial Times

U.S. Dollar and S&P 500 Equity Risk Premium Higher bond yields reduce the S&P 500 equity risk premium, which weakens the U.S. dollar. Image: Morgan Stanley Research

Demographics and Interest Rates Interesting chart suggesting that demographics explain bond yields. Image: Fidelity Investments

Trade War and Financial Conditions Index The trade war has tightened the Goldman Sachs FCI by about 60bp cumulatively. The Goldman Sachs Financial Conditions Index (FCI) is a weighted sum of a long-term corporate yield, a short-term bond yield, the exchange rate, and a stock market variable. Image: Goldman Sachs Global Investment Research

Equity Risk Premium The equity risk premium (earnings yield less bond yield) stands at 4.48% (the 90th percentile since 1985). It suggests that equities are cheap relative to bonds. Image: Fidelity Investments

US Long-Term Mortgage Rates Decline: 30-Year Average 4.10% & 15-Year Average 3.57% Why US long-term mortgage rates decline? Mortgage costs are influenced by the 10-year Treasury yield which was lower this week, because the trade war between the United States and China pushes investors moving money from stocks to bonds. Bond yields fall as prices rise.…

U.S. Dollar vs. Japanese Yen (USD/JPY) When yields on U.S. Treasury bonds are higher than those on Japanese government bonds, it can lead to a weakening of the Japanese yen relative to the U.S. dollar. Image: BCA Research

Nasdaq 100 and U.S. 10-Year Treasury Return Index The divergence in returns between technology stocks and U.S. Treasury bonds is significant. Image: BofA Global Investment Strategy

Central Bank – BOJ Outright Purchases of JGBs Will the Bank of Japan (BOJ) continue to buy Japanese government bonds as part of its yield curve control policy? Image: BofA Global Investment Strategy

BB HY Monthly Total Returns U.S. BB rated high yield corporate bonds have dropped sharply in January. Image: BofA Global Investment Strategy

U.S. Treasuries Seasonality Historically, U.S. 10-year yields tend to drop on average from May to November. Image: Nordea and Macrobond