May 6, 2015, 4:36 AM
- A worldwide selloff in government bonds deepened today, buoyed by rising German Bund yields that recently hit record highs and narrowed their gap with U.S. Treasuries.
- Benchmark 10-year Bunds now trade at 0.53%, having hit a record low of 0.05% last month, when many expected them to turn negative.
- The vicious bond market meltdown is also raising pressing questions for investors - is this a correction or merely a trend change?
- ETFs: EMB, PCY, EU, BNDX, ELD, JGBS, EMLC, JGBD, DSUM, WIP, BWX, VWOB, AUNZ, ALD, IGOV, ILB, BUNL, LEMB, JGBL, EMAG, ITLY, ITIP, ISHG, BWZ, ITLT, EBND, CBON, BUNT, GGOV, JGBT, GTIP, PFEM, JGBB, EMSH, CHNB, FEMB
Jan. 7, 2014, 4:44 AM
- Ireland's first bond sale since exiting its EU bailout appears set to be a blockbuster, with the government reportedly receiving indications of interest worth €9B for the planned sale of €3B in 10-year debt.
- The demand has caused the yield on existing 10-year paper to drop 8 bps to an eight-year low of 3.27% compared with a peak of 15% in 2011.
- Based on early orders, the new notes will carry interest of 3.55%.
- ETFs: BWX, BNDX, EIRL, IGOV, BWZ, ISHG
Mar. 18, 2013, 4:57 AMRon Rowland offers additional highlights on the recently expanded lineup of commission-free ETFs over at Fidelity including the following caveat: Funds not held for 30 days by retail investors or 60 days by RIAs using Fidelity as a custodian will be subject to a $7.95 per-trade commission. Some RIAs have complained that the longer holding period directed at them is unfair. Rowland spells out the full list of affected ETFs here. | Mar. 18, 2013, 4:57 AM
Jul. 25, 2012, 1:05 PM
Stable or shrinking yield premiums to Treasurys suggest some emerging market sovereign debt is emerging as a safe-haven play. Of note are Mexico, Brazil, and Colombia, but the Philippines and Indonesia are also on the list of those not necessarily selling off every time markets go into "risk off" mode.| Jul. 25, 2012, 1:05 PM
Apr. 11, 2012, 10:44 AM
Jan. 3, 2012, 5:55 AMG7 countries will need to refinance over $7.6T of debt this year, with the amount increasing to more than $8T when interest payments are included. Japan leads the way with $3T, followed by the U.S. with $2.8T. Crucially, Italy will need to raise $428B and pay another $70B in interest. | Jan. 3, 2012, 5:55 AM | 2 Comments
Aug. 5, 2011, 4:53 AMItalian and Spanish bond yields are rising ever higher and world markets are being routed, but for the ECB to step in would be "like pouring water into a bucket with a hole in it," says governing council member Luc Coene. Seems like he's pouring water onto an electric fire. | Aug. 5, 2011, 4:53 AM | 1 Comment
Aug. 5, 2011, 4:22 AMFurther increases in Italian and Spanish bond yields make a mockery of the ECB's buying of just Irish and Portuguese debt. Italian 10-year bond yields hit more fresh euro-era highs, rising 0.15 percentage point to 6.35%. Those of Spain hit 6.358%. Meanwhile, the yield on gilts touches a record low of 2.59%. | Aug. 5, 2011, 4:22 AM
Apr. 30, 2011, 8:15 AM
Tim Geithner and Treasury may not be intentionally holding down the dollar, but that doesn't mean it's poised for any kind of rally. There are still ways to profit from the incredible shrinking greenback, including large-cap heavy exporters, international bonds, gold (of course), and some - not all - foreign currencies.| Apr. 30, 2011, 8:15 AM | 2 Comments
Apr. 7, 2011, 5:05 PM
GE Asset Management, following "very, very aggressive run-ups" in credit markets, is unloading its CMBS, junk bonds, and emerging market debt in favor of longer term Treasuries. CIO Paul Colonna sees not a recession, but an economic slowdown enough to "impact asset prices."| Apr. 7, 2011, 5:05 PM | 1 Comment
Mar. 24, 2011, 5:53 PM
It looks like the IMF has finally gotten the memo, declaring in a blog post that government bonds are not the risk-free asset they once were. The main implication being that sovereign paper now assumes the characteristics of a credit instrument - the price mainly reflects probability of default.| Mar. 24, 2011, 5:53 PM | 9 Comments
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- In Your Portfolio: A Guide To International And Emerging Market Government Bond ETFs
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