Bond market telling a different story than stocks. Bond-market guru Jeff Gundlach says he's watching a few areas of the market to gauge whether the current bullish dynamic is starting to unravel in earnest. On Wednesday afternoon, during a CNBC interview, he said that he's sees some early cracks that are worth investors' attention.
Market gains have been driven by macro factors, putting stocks on shaky ground. "I don't like losses, sport. Nothing ruins my day more than losses, "said Gordon Gekko.
Investors are flocking to riskier corners of the traditionally safe municipal bond market in a search for yield. They are buying hundreds of millions of dollars of debt issues from unrated and below-investment-grade borrowers such as energy projects and upstart charter schools. It is a shift within a part of the bond market commonly considered almost as safe as Treasurys.
Marathon Asset Management CEO Bruce Richards said government bond yields trading at negative levels "is the most absurd thing central banks have done and it will blow up in their face," at the CNBC Institutional Investor Delivering Alpha conference on Thursday. Ultra-loose monetary policy by major central banks including, the Bank of Japan and the European Central Bank, have contributed to the phenomenon of government bond rates falling below subzero levels.
* China agriculture delegation scraps U.S. farm visit to Montana. * MSCI world equity index slips. * Central bank easing helps risk sentiment but trade tensions hurt. * Treasury yields fall; dollar falls vs yen. * Oil prices edge higher. By Saqib Iqbal Ahmed.
A sharp rally in the bonds of three distressed companies-- McDermott International Inc. (MDR), California Resources
Corp. (CRC) and PG&E Corp.-- dominated trading in the corporate bond market Friday. The surge marks a rebound after earlier selloffs in the debt, showing how volatile trading in riskier bonds has become amid investor uncertainty about geopolitics, interest rates and economic growth. McDermott's 10.625% bond due 2024 more than doubled in price today and was the most actively...
The Canadian dollar edged lower
against its U.S. counterpart on Friday as domestic data showing
the first retail sales gain in three months failed to impress
investors.
The Fed lowered interest rates by a quarter point this week. Treasury yields fell on Friday after a China delegation cut their visit short to the U.S., underlining the potential for trade tensions to flare up again. For the week, yields tumbled as the Federal Reserve cut rates and handled a surge in overnight borrowing rates.
* China agriculture delegation scraps U.S. farm visit to Montana. * MSCI world equity index slips. * Central bank easing helps risk sentiment but trade tensions hurt. * Treasury yields fall; dollar slips vs yen. * Oil prices edge higher. By Saqib Iqbal Ahmed.
U.S. Treasury yields fell on
Friday after a Chinese delegation canceled planned visits to
U.S. farms, raising concerns that the United States and China
are unlikely to forge a trade deal in the near ...
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