Investors in emerging-market bonds came to a similar view, acting as if the risks posed by a bond issued by developing-country governments were barely higher than that posed by an American Treasury bond (see article).
The 30-year-plus bond bull market is reflected by this long-term chart of T-Bond yields by year-they have declined from 15.2% to 2.91%!
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The Euro currency was supported by successful bond auctions by Spain and Ireland on Thursday.
There was an exodus of income investors who were forced out of the bond market by inflated bond prices and low yields, and into the stock market mostly dividend paying stocks.
Stock values are derived by discounting dividends, bond values by discounting interest coupon payments.
Mr. Fertig said that run-up had been fueled by hopes for a third round of direct bond buying by the Fed, known on Wall Street as QE3.
Mr Rajoy's government wants to avoid being prodded by bond markets or nagged by Angela Merkel, the German chancellor.
In theory, the economy will then bounce back, led by exports, and the government will return to the bond markets by autumn 2013.
However, the model also suggests that, if lower interest rates are to revive the economy, a cut of 2.5 percentage points (the size of the cut until this week) would normally be expected to have lifted share prices by 22% within a year, reduced long-term bond yields by three-quarters of a point, and left the dollar 5% weaker.
Still, some analysts say that if the economy emerges from a slowdown caused in part by the government cuts and starts accelerating, the Fed might taper its bond purchases by fall.
Top holdings include a water and sewer revenue bond issued by Miami-Dade County, Florida, an Atlanta, Georgia Water and Waste Revenue Bond, and a New Jersey Health Care Authority Revenue bond.
But the low yield achieved by Unilever and IBM is part of two further trends: the increased use of the bond markets by European companies and a new-found enthusiasm of investors for corporate debt.
You might even detect a hint of Lester Burnham, the disenchanted, depressed 50-something played by Kevin Spacey in Mendes' "American Beauty, " in the disaffected and mildly disabled Bond played by Daniel Craig this time out.
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On the Importance of Bond Traders by Addison Wiggin originally appeared in the Daily Reckoning.
The price of a ten-year bond issued by Mexico fell by nine percentage points at one stage.
Have a look at the recent bond offerings by highly-rated companies like Amazon.com and Intel.
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This requires more support for bond markets by the European Central Bank or by an expanded bail-out fund.
Auction rate securities are a form of bond issued by a variety of sources, including municipalities and student lenders.
In essence, China has not financed any new bond issuances by the United States since the end of 2010.
Buy a bond backed by an aging 747 or 767 and you could find even 40% isn't enough of a discount.
It is an enduring bond forged by our shared history, our common values, and our united obligation to build a better future.
For its part, the finance ministry has tried to prop up the government-bond market by issuing new bonds over the past two years.
Thompson also may tie the PNTR bill to legislation requiring greater transparency for stock and bond offerings by Chinese and other foreign government-owned enterprises.
Some key data about bond purchases by Bank of Cyprus - now the focus of a controversial EU-IMF bailout - is missing, investigators have found.
Earlier today yields dropped slightly amid talk of Italian bond purchases by the ECB, but they were back on the rise later in the day.
Chironis frequently sold one bond and replaced it with a bond issued by a similar issuer and offering a similar yield over a similar duration.
So, you may be thinking, you could hedge your U.S. bond portfolio by making a side bet against the dollar in the foreign exchange market.
This week a subordinated bond issued by Sakura Bank was trading at a whopping seven percentage points over Libor, the rate at which the healthiest banks borrow.
In the event the ratings agency cut Greek long-term bond ratings by two notches to B from BB- and said that the outlook may bring a further weakening.
Hence her refusal to endorse unlimited bond buying by the ECB and her dismissal of jointly guaranteed eurobonds, an idea touted again this week by the European Commission.
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