Saturday, October 19

Tag: Government Debt/Bond Markets

Bonds vs. Bond Funds: How Higher Rates Are Changing the Calculation
11Nov By adminNo Comments
Money

Bonds vs. Bond Funds: How Higher Rates Are Changing the Calculation

The new era of higher interest rates has reignited a long-smoldering Wall Street debate: Is it better for ordinary investors to buy individual bonds outright? Or shares of bond mutual funds?During the yearslong period of near-zero interest rates, the answer seemed simple: Funds had low fees and were easy to buy and sell, and share values rose alongside bond prices. If any one bond defaulted, losses were minimal. Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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Bonds vs. Bond Funds: How Higher Rates Are Changing the Calculation
11Nov By adminNo Comments
World

Bonds vs. Bond Funds: How Higher Rates Are Changing the Calculation

The new era of higher interest rates has reignited a long-smoldering Wall Street debate: Is it better for ordinary investors to buy individual bonds outright? Or shares of bond mutual funds?During the yearslong period of near-zero interest rates, the answer seemed simple: Funds had low fees and were easy to buy and sell, and share values rose alongside bond prices. If any one bond defaulted, losses were minimal. Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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Hackers Hit Wall Street Arm of Chinese Banking Giant ICBC
10Nov By adminNo Comments
Money

Hackers Hit Wall Street Arm of Chinese Banking Giant ICBC

Updated Nov. 10, 2023 8:03 am ETA U.S. subsidiary of China’s biggest bank was hacked this week, threatening a temporary logjam for some trades in the Treasury bond market.ICBC Financial Services, a New York-based entity owned by the Industrial and Commercial Bank of China, was the victim of a ransomware attack on Wednesday. The unit largely focuses on clearing, which means ensuring that transactions previously agreed by traders go through, and on lending and borrowing through repurchase agreements—a form of collateralized funding that forms a vital part of the financial system. Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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Three Concerns Facing Markets: Economy, Government Spending, the Fed
4Nov By adminNo Comments
Money

Three Concerns Facing Markets: Economy, Government Spending, the Fed

Wednesday provided a perfect demonstration of the three most important issues facing markets: the economy, government spending and the Federal Reserve.Ten-year Treasury yields posted their third-biggest daily drop since March, when Silicon Valley Bank failed. Investors put equal weight on the three issues—knocking 0.05 percentage point off the yield after each of three events—as their worries eased about the pace of growth, the scale of government bond issuance and how long the Fed will keep rates high.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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Three Concerns Facing Markets: Economy, Government Spending, the Fed
3Nov By adminNo Comments
World

Three Concerns Facing Markets: Economy, Government Spending, the Fed

Wednesday provided a perfect demonstration of the three most important issues facing markets: the economy, government spending and the Federal Reserve.Ten-year Treasury yields posted their third-biggest daily drop since March, when Silicon Valley Bank failed. Investors put equal weight on the three issues—knocking 0.05 percentage point off the yield after each of three events—as their worries eased about the pace of growth, the scale of government bond issuance and how long the Fed will keep rates high.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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Fed Pause Helps Treasury Yields Retreat and Stocks Climb
1Nov By adminNo Comments
Money

Fed Pause Helps Treasury Yields Retreat and Stocks Climb

Many investors on Wednesday looked to the Federal Reserve for hints about whether this autumn’s unusual ascent in Treasury yields would help finish America’s inflation fight. The central bank’s message: maybe. In the tug of war between low-risk government debt and higher-risk equities, that was enough of a signal to push stocks higher Wednesday. The Dow Jones Industrial Average rose 0.7%, or 222 points, while the tech-heavy Nasdaq Composite added 1.6%. The S&P 500 increased 1.1%, led by the information-technology and communication services sectors. Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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The Money Has Stopped Flowing in Commercial Real Estate
31Oct By adminNo Comments
Money

The Money Has Stopped Flowing in Commercial Real Estate

Commercial real-estate lending is shrinking to historically low levels, threatening a rise in defaults on expiring debt and a sharp decline in new construction of warehouses, apartments and other property types.Banks, insurance companies and other commercial property lenders have been cutting back since the first half of 2022 when the Federal Reserve began increasing interest rates and recession concerns intensified. But creditors have been even more reluctant to make new loans as Treasury bond yields have soared since early August.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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Decoding the (Almost) 5% 10-Year Treasury Yield
30Oct By adminNo Comments
Money

Decoding the (Almost) 5% 10-Year Treasury Yield

Updated Oct. 30, 2023 12:33 pm ETListen to article(1 minute)The yield on the benchmark 10-year U.S. Treasury note touched 5% for the first time in 16 years last week, spurring debate about whether it has peaked or just taken another step in its long and disruptive climb.Treasury yields play a critical role in determining borrowing costs across the economy. Their nearly two-year surge has driven 30-year mortgage rates close to 8%, weighed on stocks and stirred anxieties that the surprisingly resilient economy could finally fall into a recession.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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‘Buy the Dip’ Investing Mantra Lives On—in the Bond Market at Least
29Oct By adminNo Comments
Money

‘Buy the Dip’ Investing Mantra Lives On—in the Bond Market at Least

Oct. 28, 2023 11:00 pm ETListen to article(2 minutes)One of the hottest investments on Wall Street is something of a surprise—it’s a battered long-dated Treasury bond fund.Shares of the iShares 20+ Year Treasury Bond ETF are near a 16-year low and have lost more than half their value from their 2020 peak, but investors are piling in. They added more than $2 billion to the fund on Tuesday and Wednesday alone, bringing its total inflows for the year to $21 billion.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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