Frankfurt: The German and the US government
bond yield curves had steepened, led by long-term
bond yields, after the flattening observed previously.
By comparison, Portugal 's 10-year
bond yield is 2.
Germany's benchmark 10-year
bond yield edged lower to 0.
European equities fell and Germany's 10-year
bond yield slid to a record low for a second day on Wednesday, as fears about the impact of Brexit on economic growth gripped global markets and underpinned demand for safe-haven bonds.
In response to these macro-variables and a decisive outcome in the 2014 national elections, the benchmark 10-year government
bond yield declined by around 100 basis points (bps) in the second half of 2014 to around 7.
The yield on the benchmark 10-year Japanese government bond ended higher Monday as views spread that Bank of Japan chief Haruhiko Kuroda expects a rise in the long-term
bond yield.
For example, suppose that the long-term
bond yield is higher than the average of the current short-term interest rate and short-term rates expected over the life of the long-term bond.
1 percent in November, since the AAA corporate
bond yield declined by about 0.
It thereby allows underlying swap payments and related receipts, if any, to be included in the
bond yield (interest rate) calculation.
A move in the 10-year
bond yield above 5% Thursday--a level not seen since last summer--sent stock market investors scurrying over to bonds.
The figure below compares the S&P 500 earnings yield with the ten-year Treasury
bond yield, It shows that, beginning in September 2002--and for the first time since Ronald Reagan's first election--investors required from equities a higher earnings yield than the benchmark
bond yield.
Edington, 1992, "
Bond Yield Spreads--A Postmodern View--Another Look at
Bond Yield Spreads", Journal of Portfolio Management, 19:68-75
