Do long-term bonds represent a once-in-a-generation opportunity?

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 26 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 14%
  • Publisher: 92%

Finance Finance Headlines News

Finance Finance Latest News,Finance Finance Headlines

The current interest rate situation may signal an investment possibility of particular benefit to retirees

One’s perception of interest rate trends depends very much on the time frame chosen. It is well known that long-term interest rates peaked in 1981 and then plummeted to about the 2-per-cent level over the next 40 years. Less well known is that this period represents just half of a longer-term cycle as interest rates had risen steadily from the 2-per-cent level in 1940 to the peak in 1981.

As of Thursday morning, the 10-year U.S. Treasury yield is 4.70 per cent while the yield on Government of Canada 10-year bonds is 4.14 per cent. Thus, yields are very close to the top end of the long-term range of 2 per cent to 5 per cent. There are two main scenarios for bond yields in the next few years.

An easy way to do this is to buy units in an exchange traded fund that is dedicated to long-term bonds. If yields do in fact fall, it will result in double-digit returns for bond holders.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in FİNANCE

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Global Bonds Are at the Mercy of Treasuries in Echo of 2020 Rout(Bloomberg) -- Global bonds are getting hammered as Treasuries bulldoze their way through the world market to the greatest extent since the pandemic hit in 2020.Most Read from BloombergKey Taiwan Tech Firms Helping Huawei With China Chip PlantsWall Street Fear Gauge Ratchets Up After Jobs Data: Markets WrapKevin McCarthy Ousted as US House Speaker by Republican DissidentsWhy a US Recession Is Still Likely — and Coming SoonAirbnb Is Fundamentally Broken, Its CEO Says. He Plans to Fix It.Traders a
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

The stock market sell-off is all about the 'pain trade' in bondsAs stocks sell-off Wall Street strategists believe all of the action is in reaction to rising treasury yields.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Asian Stocks Gain After Bounce in US Shares, Bonds: Markets Wrap(Bloomberg) -- Shares rose in Asia after stocks and bonds rallied on Wall Street, bringing some relief to financial markets after a series of punishing losses. Traders’ focus now turns to Friday’s US jobs data.Most Read from BloombergAlmost Anyone Can Become the House Speaker, Except Donald TrumpKey Taiwan Tech Firms Helping Huawei With China Chip PlantsOzempic Is Making People Buy Less Food, Walmart SaysUS Stocks Buoyed by Big Tech Gains as Yields Slide: Markets WrapApple Considered, Rejected S
Source: YahooFinanceCA - 🏆 47. / 63 Read more »