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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
|
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
|
3.13% |
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S&P National 0-5 Year Municipal Bond Index
|
0.70% |
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| S&P/BGCantor US Treasury Bond |
400.09 |
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| More |
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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)
|
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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The Bond Bubble Mirage |
forbes.com - June 14, 2010 - by Matthew Craft
Bond markets often foil the best of estimates and follow a different path.
Financial planners, pundits and money managers have warned of a swelling bond-market bubble. Their evidence: the flood of money piling into bond funds and the current low yields on U.S. Treasuries. They say oblivious investors may soon get crushed when interest rates rise and bond prices fall.
The argument rests on sound logic, but markets aren't always logical. History and a handful of recent studies show that bond markets often foil the best of estimates and follow a different path. Bond yields, in fact, could remain low. Over the past year, soaring U.S. government debt has led many to predict sky-high Treasury yields, which are the cost of government borrowing. Instead, the 10-year yield of 3.26% is near its one-year low of 3.14%, reached June 7.
"In the discussion about the outlook for Treasury bonds, the point must be emphasized that supply alone has been an inadequate focus for predicting future prices/yields," said David Rosenberg, chief economist at Gluskin Sheff, in a recent note to clients.
Rosenberg cites two examples. When Treasury debt was scant in 1999, the 30-year Treasury bond jumped from 4.7% to 6.7%. Or take Japan, where total government debt to economic output is near 200% and the 10-year Japanese government bond pays a meager 1.2% It makes better sense to look at inflation expectations for a guide to Treasury rates, Rosenberg offers. Judging by the difference between 10-year Treasuries and inflation-protected securities, bond traders expect 0.17% inflation for the next decade.
If that proves optimistic, and inflation takes hold, Treasury bonds will drop, spurring higher yields, but that doesn't mean other bonds would necessarily follow along. Risky corporate bonds, for instance, have a habit of going their own way.
View the complete article [here]
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| Stuff to look at |
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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