Tag Archives: interest rates

Weighing In: On Inflation

In my last post, I introduced a series called “Weighing In:” that includes comparisons of the effectiveness of the Dow Jones Commodity Index (DJCI) and the S&P GSCI to reach certain portfolio goals.  Although there are a number of reasons investors use commodities, diversification and inflation protection are the two most common. According to Blu Putnam, Managing Read more […]

High Yield Gives Up Ground To Investment Grade

After having risen 19 basis points the first week of July, the yield on the S&P/BGCantor Current 10 Year U.S. Treasury Bond Index dropped 20 basis points from the July 3rd 2.72% to its current 2.52%, offsetting the initial increase.  The move up in yield to start July was the largest weekly jump since last Read more […]

Unemployment Puts The Question of A Rate Increase In Play

After starting last week at a yield of 2.52%, the yield of the S&P/BGCantor Current 10 Year U.S. Treasury Bond Index climbed to a high of 2.72% to close the index before the July 4th holiday.  The 6.1% unemployment number moved yields higher as the markets were expecting an unchanged result from the prior level Read more […]

GOOOAL! For Mid-Year Treasury & Muni Returns

The month of June came quickly to a close and with it the half year 2014 index results.  At the start of the year expectations were for yields to be above 3% and climbing.  In reality rates have done the opposite as the yield on the S&P/BGCantor Current 10 Year U.S. Treasury Index is a Read more […]

Back When I Was A Kid…

On my daily commute to New York City via New Jersey Transit today I overheard a conversation on the train that started with “Back when I was a kid”.  Though the start of the conversation had grabbed my attention, the rest became a blur as the statement had triggered memories that related to the current Read more […]

The Effects of Interest Rates on Canadian Preferreds

A consideration to take into account when reviewing preferreds is the fact that they are sensitive to changes in interest rates.  The reasoning behind this is due to the structure of preferreds, as many issuances pay a relatively high dividend based on a percentage of par in perpetuity.  Like bonds, preferreds generally exhibit a negative Read more […]

Inflationary Tales

The market waits in anticipation this week as key economic indicators will be released to shed light on the health and direction of the financial world. The Department of Labor released Consumer Price Index (CPI) data for May showing consumer inflation ticking up 2.1% over the past twelve months.  The Federal Reserve has stated an Read more […]

Bonds Will Need to Tread Lightly With Domestic And Global Issues

Last week saw the yield of the S&P/BGCantor Current 10 Year U.S. Treasury Bond Index close 1 basis point tighter than the 2.61% that started its week.  Thursday was the only day in which the yield moved significantly as yields tightened by 5 basis points in reaction to the weaker than expected Retail Sales release.  Read more […]

Rising Inflation? That’s For Time To Decide

With the volume of news headlines and the speed of information, tid bits of news, some with the potential to be significant, can naturally get lost in the shuffle. One such issue that might have some significance in the coming weeks is the president of the St. Louis Federal Reserve, James Bullard saying that there Read more […]

Is 3% The New Black?

As with each summer’s fashion a new color of dress becomes the “new black”.  Pink, green, orange, you make the choice.  In regard to the bond markets the question could be is 3% the new black?  Bill Gross seems to think so, he is calling for economic growth and yields to remain slow and low, Read more […]