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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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| 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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Betting on Bernanke Yields 28% Returns for Treasuries |
Bloomberg - Sept. 26, 2011 - By Daniel Kruger and John Detrixhe
Betting on Ben S. Bernanke has been the most profitable trade for government bond investors in 16 years, defying lawmakers in the U.S. and abroad who said the Federal Reserve chairman’s policies would lead to runaway inflation and the dollar’s debasement.
Treasuries due in 10 or more years have returned 28 percent in 2011, exceeding the 24.4 percent gain in all of 2008 during worst financial crisis since the Great Depression, according to Bank of America Merrill Lynch indexes. Not since 1995, when the securities soared 30.7 percent, have investors done so well owning longer-dated U.S. government debt.
The rally continued last week, driving yields to record lows, as the Fed said it would exchange $400 billion of short- term Treasuries for those maturing in more than six years. The move, dubbed Operation Twist by traders, is designed to lower borrowing costs and keep the economy growing. Previous Fed efforts unlocked credit markets and helped ward off deflation.
Bonds are producing “monster” gains, said Mitchell Stapley, the Grand Rapids, Michigan-based chief fixed-income officer for Fifth Third Asset Management, which oversees $22 billion, in a Sept. 19 telephone interview. “I’m dealing with a Federal Reserve with an unlimited balance sheet that is desperately looking for something to do to revive the economy.”
Unexpected Rally
With the U.S. budget deficit exceeding $1 trillion, this year’s rally caught investors by surprise. The lowest forecast among 71 economists and strategists surveyed by Bloomberg News from Jan. 3 to Jan. 11 was for 10-year yields to end this quarter at 2.35 percent, and the median estimate was 3.63 percent. They closed at 1.83 percent last week.
While a financial model created by Fed economists that includes expectations for interest rates, growth and inflation indicates 10-year notes are the most overvalued on record, investors say they can’t afford to not own government bonds.
That’s because stocks and other assets are falling as Europe’s debt crisis deepens, the global economy slows and the Fed commits to keep its target rate for overnight loans between banks at a zero to 0.25 percent through mid-2013.
“The flight-to-safety bid is still fierce,” said Wan- Chong Kung, a bond fund manager in Minneapolis at Nuveen Asset Management, which oversees more than $100 billion, in a Sept. 19 telephone interview. “The fundamentals of very modest growth, modest inflation and a Fed that wants to commit to low rates for a long time continue to be supportive.”
For the complete article.
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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