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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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| 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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Bond Yields Are Ignoring The Good Economic News |
Seeking Alpha - Dec. 22, 2011 - By Calafia Beach Pundit
The Bond Vigilantes blog caught my eye this morning, with an excellent post and chart which inspired this version above. What this chart shows is that (up until last summer, that is) bond yields have been strongly influenced by the market's understanding of how weak or strong the economy. The white line is the Citi Economic Surprise Index, which tracks how actual economic news releases compare to expectations. The index has moved up strongly since last summer, as almost every economic indicator has come in stronger than expected (with the weekly claims report this morning the latest example). In the past, a stronger-than-expected economy such as we've seen in recent months would have led to a substantial rise in Treasury yields (10-yr yields are shown in orange). But not now, most likely because (and here I agree with the Bond Vigilantes) the market is terrified of PIIGS defaults. The news in the U.S. has clearly gotten better, but the news coming out of the Eurozone has been pretty awful, and Treasuries end up being the beneficiary of the world's intense demand for safe-haven assets.
The Fed and others might argue that Operation Twist (the Fed's current program of selling short maturity bonds and buying longer maturity bonds) is responsible for holding down 10-yr yields, but I don't buy that. The Fed can control the level of short- and intermediate-term yields, but not long-term yields. Thought experiment: if the news in Europe suddenly took a turn for the better (e.g., PIIGS governments took genuine steps to curtail spending), wouldn't you expect 10-yr yields to rocket higher?
For the complete article.
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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