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
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