mardi 6 janvier 2015
Bonds Rally Around World With Global Yields at Record-Low 1.28%
Posted on 04:09 by nice news
Global sovereign bonds rallied, pushing yields to a record low, as tumbling oil prices damped the outlook for inflation and raised the prospect central banks will extend stimulus measures to boost growth.
Bonds in the Bank of America Merrill Lynch Global Broad Market Sovereign Plus Index had an effective yield of 1.28 percent as of yesterday, the all-time low based on data starting in 1996. Treasuries rose for a seventh day, pushing 10-year yields (USGG10YR) below 2 percent for the first time since October. Borrowing costs fell to records today from Japan and Australia to Germany (GDBR10) and the U.K.
Investors are pouring cash into government debt on the prospect for slower inflation that would preserve the value of fixed payments on bonds. A second fillip is being provided by speculation the European Central Bank will start buying euro-area sovereign securities as soon as this month. Stock declines are also fueling demand for the relative safety of debt.
“There’s a load of things that continue to keep the bid in bonds,” said John Gorman, head of dollar interest-rate trading for Asia-Pacific at Nomura Holdings Inc. in Tokyo. “We have expectations for the ECB. We have oil continuing to drop, which is disinflationary. We have asset allocation; people thinking that stocks are too rich.”
The benchmark U.S. 10-year yield fell three basis points, or 0.03 percentage point, to 2 percent at 10:57 a.m. London time, according to Bloomberg Bond Trader data. It touched 1.98 percent, the lowest since Oct. 16. The 2.25 percent note maturing in November 2024 rose 10/32, or $3.13 per $1,000 face amount, to 102 7/32.
Sinking Crude
The U.S. note yield fell for a seventh day, matching a streak in October that was the longest since September 2012. The U.S. benchmark set an all-time low of 1.379 percent in 2012.
West Texas Intermediate crude fell 1.3 percent to $48.79 a barrel after sinking 5
Bonds in the Bank of America Merrill Lynch Global Broad Market Sovereign Plus Index had an effective yield of 1.28 percent as of yesterday, the all-time low based on data starting in 1996. Treasuries rose for a seventh day, pushing 10-year yields (USGG10YR) below 2 percent for the first time since October. Borrowing costs fell to records today from Japan and Australia to Germany (GDBR10) and the U.K.
Investors are pouring cash into government debt on the prospect for slower inflation that would preserve the value of fixed payments on bonds. A second fillip is being provided by speculation the European Central Bank will start buying euro-area sovereign securities as soon as this month. Stock declines are also fueling demand for the relative safety of debt.
“There’s a load of things that continue to keep the bid in bonds,” said John Gorman, head of dollar interest-rate trading for Asia-Pacific at Nomura Holdings Inc. in Tokyo. “We have expectations for the ECB. We have oil continuing to drop, which is disinflationary. We have asset allocation; people thinking that stocks are too rich.”
The benchmark U.S. 10-year yield fell three basis points, or 0.03 percentage point, to 2 percent at 10:57 a.m. London time, according to Bloomberg Bond Trader data. It touched 1.98 percent, the lowest since Oct. 16. The 2.25 percent note maturing in November 2024 rose 10/32, or $3.13 per $1,000 face amount, to 102 7/32.
Sinking Crude
The U.S. note yield fell for a seventh day, matching a streak in October that was the longest since September 2012. The U.S. benchmark set an all-time low of 1.379 percent in 2012.
West Texas Intermediate crude fell 1.3 percent to $48.79 a barrel after sinking 5
Bonds Rally Around World With Global Yields at Record-Low 1.28%
Inscription à :
Publier les commentaires (Atom)
0 commentaires:
Enregistrer un commentaire