Bond Yield

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Bond Yield

The income one receives from a bond investment, rather than its capital appreciation. The yield is calculated as the coupons the investor receives in a year expressed as a percentage of the cost of the investment. In general, riskier bonds have higher yields. Measuring the direction of bond yields over time is one way to try to predict future economic movements. See also: Yield curve.
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However, surging bond yields on an unexpected rise in inflation would expose more than half of the index.
Greek two-year government bond yields fell to their lowest level this year on Monday as investors welcomed Athens' approval of a series of reforms needed to unlock bailout cash.
Even if the pace of decline in bond yields slows in the remainder of the year, the ECB could run out of eligible bonds from some governments by the turn of the year," says Marie Diron, Senior Vice President and author of the report.
The constant money pump and the QE programmes had already put pressure on the government bonds yields: European bond yields have fallen to a record low, driving short and mid-term bond yields negative.
UK and US QE initially pushed bond yields lower, but then they gradually rose as recovery looked like it was taking hold.
The funding level improved slightly from 83% to 84%, with the improvement being driven by a fall in liability values resulting from an increase in corporate bond yields over the month.
Global bond yields were mainly lower on the ECB QE plan, which includes the purchase of Eurozone sovereign debt.
PLUNGING oil prices have sparked a big rally in Asian government bond markets as lower fuel costs cut inflation expectations, but the rally could be built on shallow foundations as monetary policymakers remain out of step with tumbling bond yields.
NEW YORK, Shawwal 18, 1435, Aug 14, 2014, SPA -- Global equity markets edged higher on Thursday after President Vladimir Putin of Russian sounded a conciliatory note over the crisis in Ukraine, while bond yields in Europe fell to record lows as the euro zone's recovery stalled in the second quarter.
The Taper, should it happen, is likely to have wider implications than US bond yields rising and the global effects could be widespread," said Dan Dowding, senior executive officer of Mena and South Asia at Killik & Co.
DTZ, a UGL company, has predicted that the withdrawal of quantitative easing (QE) could pose a threat to investors over the next five years, triggering a sharper and quicker spike in government bond yields, and reducing expected returns on office property.
The $85 billion (e1/464 billion) per month that the Fed has ploughed into the US economy led to lower bond yields in the United States, as well in many other countries as easy money went abroad from the United States in search of somewhat higher risk and yields elsewhere.