…world went negative (here, here and here). We never went negative in the US, but negative yields were part of the overall phenomenon of declining interest rates. If you look…
…yield is an important component of total return (which is income and appreciation/deprecation together), we sometimes see investors stretch for yield without fully understanding the consequences of their decisions. The…
…Rebounds, Lifting Markets Negative Swiss Yields Get Even Crazier Why Did Stocks and Bonds Gain Last Week? The Market Hates Uncertainty Mr. Market Trades the Brexit EU Article 50 Currency…
When US Treasury bills first traded with negative yields in 2008, I took a screen shot, printed it and put it in a folder of interesting stuff that I look…
…hung up the phone, I looked up the yield and was shocked to see it was 2.545 percent – a big move from the previous day, when the yield was…
…higher the yield, on the y-axis. Under normal circumstances, yields are higher the further out you look into the future because there is more uncertainty, which requires a higher yield…
…to 1.86 percent, levels that we haven’t seen since last April. The drop in yields are even more dramatic at the short end of the yield curve. The yield on…
…the yield curve; (3) and changes in bond prices due to future changes in yields. There is no reliable way to predict future changes in yields due to unanticipated future…
…market based forecast of yields based on current prices. Back in December, the implied forward yield was 3.09 percent. Obviously, the implied forward yield was wrong too, but it’s interesting…
…curve as a reference point. The red solid line is the Bloomberg General Obligation AA Rating yield curve. This curve is the nominal yield, or after tax yield, for each…
