Bond Market Losses Are Finally Over, Unless Yields Blow Past 6%

The recent round of selling has left the Bloomberg USAgg Index’s yield-to-duration ratio — a measure of how much yields would need to jump to wipe out the value of coming interest payments — hovering around the highest levels in over a decade.

Few are currently expecting yields to climb that high, even with speculation mounting that the Federal Reserve will hold monetary policy tight to ensure inflation doesn’t pick up again. As a result, bonds may have finally reached the point where interest payments are large enough to insulate investors from price losses, providing a floor for a market that’s struggling to emerge from the deepest downturn since at least the 1970s.

Prices slid again this month, driving Treasuries briefly back into the red for the year, due to a confluence of forces, including the economy’s resilience and a deluge of new Treasury sales. The selloff sent 10-year Treasury yields to as high as 4.36% on Tuesday, a 16-year high.

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market today: Wall Street rises as easing yields in the bond market relax the pressureNEW YORK (AP) — Wall Street is rising Wednesday as the pressure that's built on stocks recently from the bond market relaxed a bit. The S&P 500 was 1.2% higher in afternoon trading, trimming its loss for what's so far been a dismal August. The Dow Jones Industrial Average was up 203 points, or 0.6%, at 34,492, as of 2:13 p.m. Eastern time, and the Nasdaq composite rallied 1.7%. Big Tech stocks and others that benefit from easier interest rates led the way. They got some relief as the 10-year Tre
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

China, Japan share of U.S. bond market shrinks to record lowThe world’s top two holders of U.S. debt no longer pack the Treasury market punch they once did
Source: globeandmail - 🏆 5. / 92 Read more »

Column-China, Japan share of U.S. bond market shrinks to record low: McGeeverBy Jamie McGeever ORLANDO, Florida (Reuters) - What if Japan or China intervened in the foreign exchange market to sell dollars and support their ...
Source: SaltWire Network - 🏆 45. / 63 Read more »