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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
|
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 Gain in Best Year Since ‘05 as Rally May End |
Bloomberg - June 28, 2010 - By Mary Childs
(Updated today’s 10-year yield in sixth paragraph.)
Global bond returns may have nowhere to go but down after the best first half since 2005.
Investors who piled into Treasuries, bunds, gilts, and Japanese bonds on concern that Europe’s sovereign-debt crisis would derail global growth are finding the securities less appealing with yields at about the lowest on record. The emerging bearishness may be most apparent in the $4.3 trillion- a-day market for U.S. Treasury repurchase agreements, where no maturity commands a premium.
That’s a switch from a year earlier, when investors resorted to paying interest to borrowers while lending cash just to obtain Treasuries after the worst finance crisis since the Great Depression. None of the securities are what traders call on “special” in a sign that investors don’t expect Europe’s sovereign debt crisis will curb the global economic recovery, according to data from GovPX Inc., a unit of ICAP Plc, the world’s largest inter-dealer broker.
“No one’s freaking out,” said Jason Brady, a managing director at Thornburg Investment Management in Santa Fe, New Mexico, which oversees $59 billion. “It’s definitely a much more situation normal indicator than what we saw a couple years ago when it was a horror show. As we’ve gotten to lower yields in Treasuries, they’ve gotten less interesting.”
Yield Forecasts
Treasury 10-year note yields, the benchmark for everything from mortgages to corporate bonds, will climb to 3.74 percent by year-end from 3.11 percent on June 25, based on a Bloomberg survey of forecasters. That would imply a loss of about 3.26 percent as yields rise and note prices fall, according to data compiled by Bloomberg.
The 10-year note yielded 3.04 percent at 9:57 a.m. in New York.
Government debt is “our least-favored segment of the bond market,” a team of strategists led by Jeff Applegate, who oversees about $1.8 trillion as chief investment officer for Citi Global Wealth Management in New York, said last week in the firm’s Global Investment Committee Monthly report for June. “We expect to see higher yields once investor risk aversion recedes, causing this sector of the bond market to underperform.”
Leading the Gains
The benchmark 10-year Treasury note has returned 7.85 percent this year, including reinvested interest, leading global government bonds to a gain of 3.36 percent, according to Bank of America Merrill Lynch indexes. That’s the best start since the firm’s broadest sovereign debt index rose 3.77 percent in the first half of 2005.
Sovereign debt yields dropped to 2.10 percent on average last week, within 3 basis points of the low of 2.07 percent reached on May 25, based on the firm’s Global Sovereign Broad Market Plus Index. The gauge tracks 1,165 bonds with a market value of $18.6 trillion.
Instead, slower inflation, worsening government finances in Europe and concern that Greece will default on its debt and send the global economy into another recession led investors to seek the safety of bonds issued by G-7 nations. The MSCI World Index of stocks has fallen 7.44 percent this year.
For the complete article [Business Week]
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