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| BondsOnline.com: instant access to and extensive coverage of over 3.5 million stocks, bonds, indexes and other securities covering major and emerging markets and exchanges across the globe. |
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| Bonds Online |
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| 5/10/2013Market Performance |
| Municipal Bonds |
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S&P National Bond Index
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3.00% |
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S&P California Bond Index
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2.96% |
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S&P New York Bond Index
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3.13% |
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S&P National 0-5 Year Municipal Bond Index
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0.70% |
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| S&P/BGCantor US Treasury Bond |
400.09 |
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| Income Equities: |
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| Preferred Stocks |
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S&P U.S. Preferred Stock Index
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848.03 |
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S&P U.S. Preferred Stock Index (CAD)
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636.26 |
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S&P U.S. Preferred Stock Index (TR)
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1,701.05 |
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S&P U.S. Preferred Stock Index (TR) (CAD)
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1,276.26 |
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| REITs |
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S&P REIT Index
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174.07 |
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S&P REIT Index (TR)
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425.30 |
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| MLPs |
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S&P MLP Index
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2,469.58 |
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S&P MLP Index (TR)
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5,428.50 |
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See Data
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Bonds Are Too Hot |
Forbes.com - Jan. 22, 2010 - by Matthew Craft
The flow of money into bond funds has had many welcome knock-on effects. As bond prices rise and yields fall, borrowing costs have dropped, helping companies tap the flood of cash to pay off other more expensive debts. But market watchers at Citigroup are beginning to worry about bonds' newfound popularity.
In a note to clients this week, Citigroup ( C - news - people ) strategists compared the current trend to the craze for technology stocks more than a decade ago. "Such conditions were evident for aggressive growth equity mutual funds during the late 1990s at the apex of the Internet bubble and a similar trend appears to be forming now," wrote Tobias Levkovich and Lorraine Schmitt. They liken the paltry yield on Treasury bills – 6-month bills currently pay 0.13% -- to the high valuations given technology stocks in late 1999.
The strategists fret that when interest rates move higher it could hurt stocks by taking a bite out of earnings (the government rate is used to figure out what future cash flows are worth today; a higher rate lowers the present value). Once investors see yields rise and bond prices fall, they may race out of bond funds as quickly as they moved in, pushing yields even higher. "Record flows into bond funds are quite worrying," they said.
Data from fund tracker EPFR Global shows bond funds took in $4.83 billion in the third week of January and equity funds lost a net $1.9 billion. Investors deposited $1.56 billion in U.S. fixed-income funds, a category that includes Treasury and municipal bonds, the 55th straight week such funds have netted new money.
Compared with the recent rush by companies into bond markets, it was a light week for new sales. Vanguard Health, Newfield Exploration ( NFX - news - people ) and medical-device maker Accellent issued high-yield bonds. Sales from fitness chain Equinox Holdings and the soccer club Manchester United were expected to get wrapped up on Friday.
Morgan Stanley ( MS - news - people ) sold $4 billion of 5-year and 10-year notes on Thursday, the same day President Obama announced his proposal to curb risky bets by banks, an idea long championed by former Federal Reserve Chairman Paul Volcker. Analysts at CreditSights say the proposals may fall hardest on the two surviving investment banks, Morgan Stanley and Goldman Sachs ( GS - news - people ).
The Treasury also announced its planned auctions planned for next week, when a record-tying $118 billion will be up for sale: $44 billion in 2-year notes on Tuesday; $42 billion in 5-year notes on Wednesday; and $32 billion in 7-year notes on Thursday. BNP Paribas ( BNPQY.PK - news - people ) expects the government to auction a net $1.4 trillion in 2010 to finance its budget deficit.
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| Stuff to look at |
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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