Fixed Income News Results

  • Bond yields set to fall further once investors come to terms with 'sobering' economic reality, says BofA Global

    Yields are going to be "lower for a lot longer," says BofA's Zhang. Even as the COVID-19 pandemic shows signs of slowing down in the U.S. and Europe, one analyst says the tentative optimism driving the stock-market bounce and the rise in yields for government paper is unlikely to last. Carol Zhang, a rates analyst at Bank of America Global Research, says investors have assumed as long as the pandemic was brought under control, the economic damage could be reversed swiftly.

  • Global stock rally spurs selloff of Treasurys ahead of benchmark debt auction

    Treasury Department to sell $25 billion 10- year notes Tuesday. Treasury yields extended their rise on Tuesday as the bond-market sold off in the wake of signs the spread of the COVID-19 pandemic may be slowing in Europe and Asia in particular, encouraging investors back into equity markets this week at the expense of haven assets. The 10- year Treasury note yield climbed 6.9 basis points to 0.747%, while the 2- year note rate was up 2.2 basis points to 0.290%.

  • U.S. government bond yields bounce on coronavirus hopes as S&P 500 gains 7%

    Auction for 3- year notes sees tepid appetite. Treasury yields rose sharply Monday as a global rally in risk assets drew demand away from government paper on hopes that the spread of the COVID-19 disease was beginning to slow in the U.S. and Europe. Investors will see a holiday-shortened week in observance of the Good Friday holiday.

  • Coronavirus Reminder: Stocks Have a Risk Premium for a Reason

    Generations of investors have learned the lesson of stocks for the long run: Buy equities, because they do better than safe Treasurys if held long enough to reward holders for the extra risk they're taking. Sometimes that risk comes due, and now is one of those times. Bonds have been far outperforming stocks as it becomes clear that only the safest assets will avoid enormous losses amid the economic shutdown.

  • As the Fed steps into the municipal bond market, will it be enough?

    The problems that seized up the market were about liquidity, not solvency, experts stress. The month of March has been a game of Whac-A-Mole for central banks. One financial market after another springs a leak, gets patched up, and then the process repeats.

  • How the Fed's historic leap into buying corporate debt is working even before the purchases formally start

    Fed's secondary facility could top $500 billion, potentially about half of expected U.S. high-grade supply for 2020. When T-Mobile borrowed $19 billion in the investment-grade corporate bond market on Thursday to finance its acquisition of Sprint Corp, bond investors poured an estimated $65 billion worth of orders into the debt deal. FedEx Corp (FDX) on Friday secured another $3 billion, partially through the sale of 30- year debt at a 5.25% coupon, according to a person with direct...

  • Treasury yields fall after dismal March jobs data offers 'taste of things to come'

    U.S. payrolls fall 701,000 while unemployment rate rises to 4.4%. Treasury yields fell after a weaker-than-expected March jobs report underlined that even more economic pain is to come. The 10- year Treasury note yield was down 3.7 basis points to a three-week low of 0.587%, adding to a 15.7 basis point drop this week.

  • Treasury yields come off lows as crude-oil surge lifts inflation expectations

    Jobless claims over the last two weeks stands at nearly 10 million. Treasury yields bounced off their lows on Thursday as a surge in oil prices spurred by hopes of coordinated production cuts between Saudi Arabia and Russia helped to lift inflation expectations, a bugaboo for bondholders. Investors also saw a back-to-back jump in U.S. weekly jobless claims, closing the curtain over one of the strongest labor markets in American economic history.

  • Fed's liquidity programs leaves $9 trillion of 'orphan' markets in the cold

    Highly indebted companies aren't eligible to receive the Fed's assistance. The Federal Reserve is bringing to bear its considerable might to support the flow of credit in the economy, deploying emergency lending programs and outright bond purchases to maintain liquidity in debt issued by corporations, municipalities and the U.S. own government. But the enormous amount of funds the Fed has deployed won't make its way into a large swathe of financial markets-- notably the more...

  • Spread between U.S. and German bond yields narrows to tightest in six years

    The spread between U.S. and German government bond yields narrowed on Thursday to the lowest in six years, on a combination of the deteriorating U.S. economy as well as the increased prospect for eurozone spending propped up by Europe's largest economy. The yield on the benchmark 10- year Treasury fell 3.3 basis points to 0.59%, while the yield on the 10- year bund rose 1 basis point to -0.45%. The narrowing spread is much more of a story of a deteriorating U.S. economy, which was the...

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News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.