Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  A Global Snapshot of Government Bond Yields
Posted Under: Bond Market
Supporting Image for Blog Post

 
View from the Observation Deck  

  1. Today's blog post shows the yields on a couple of benchmark government bond maturities from key countries/economies around the globe.
  2. We highlight where yields have trended since the U.S. 10-year Treasury note (T-note) hit its all-time closing low of 1.36% on 7/8/16, according to data from Bloomberg.
  3. The 188-basis point (bps) increase in the yield on the 10-year T-note from 7/8/16 through 11/7/18 negatively impacted the performance of intermediate-term government bonds. 
  4. The ICE BofAML 7-10 Year U.S. Treasury Index posted a total return of -7.82% (-12.95% price return vs. 5.13% income return) over that period, according to Bloomberg. For comparative purposes, the ICE BofAML 1-3 Year U.S. Treasury Index posted a total return of 0.28% (-3.88% price return vs. 4.15% income return) over the period. 
  5. As indicated in the table, with one exception (Mexico), U.S. government bond yields have risen the most since the 10-year T-note bottomed on 7/8/16. 
  6. Investors need to be cognizant of the fact that interest rates are still at low levels relative to their historical averages. Even though the yield on the 10-year T-note is up 188 bps from its all-time low, at 3.24% (11/7/18), it is still 150 bps below its average yield of 4.74% over the past 30 years, according to Bloomberg.
  7. Bond investors have not had to cope with rising inflation for many years, in our opinion. The International Monetary Fund (IMF), however, sees inflation in "Advanced Economies" advancing at a rate of 1.8% in 2018 and 2019, up from 1.4% in 2017. It sees inflation in "Emerging Market and Developing Economies" rising from 4.3% in 2017 to 5.0% in 2018 and 5.2% in 2019. 

This chart is for illustrative purposes only and not indicative of any actual investment. Investors cannot invest directly in an index. There can be no assurance that any of the projections cited will occur. The ICE BofAML 7-10 Year U.S. Treasury Index and the ICE BofAML 1-3 Year U.S. Treasury Index track the performance of U.S. dollar denominated sovereign debt publicly issued by the U.S. government in its domestic market.  

Download a PDF of this post, please click here.
Posted on Thursday, November 8, 2018 @ 1:23 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
A Snapshot Of U.S. Equity Valuation Levels
How The S&P 500 Index & Sector Indices Have Fared YTD And Since 9/20/18
Stock market on sale … will anyone show up?
A Snapshot Of The Rally In The U.S. Dollar
Homebuilder-Related Stocks Hit Hard By A Confluence Of Events
The 2018 Stock Market Correction and Recovery Process Resembles 2015’s
How U.S. Stocks Have Fared Since 7/8/16
S&P 500 Index Dividend Payout Profile
Perspective on Volatility
S&P 500 Index Stock Prices Relative To Their 52-Week Highs
Archive
Skip Navigation Links.
Expand 20242024
Expand 20232023
Expand 20222022
Expand 20212021
Expand 20202020
Expand 20192019
Expand 20182018
Expand 20172017
Expand 20162016
Expand 20152015
Expand 20142014
Expand 20132013
Expand 20122012
Expand 20112011

Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.