The September bond future added a half point to stand at session highs of 123-22 ahead of lunchtime shaving four pips off the 10-year yield to 2.96% and leaving it within a couple of basis points of the lowest since early December.
In this case, the investor will sell the bond, and this projected future bond price must be estimated for the calculation.
It means that future bond purchases - if they happen - will not involve the Securities Markets Programme (SMP).
It's news, even if it is completely unclear, right now, how the ECB could take a hit on its future bond holdings when it had previously suggested this was not legally possible.
The worst-case scenario would be that the economy remains stagnant while the bond markets price in future inflation.
When pension funds calculate the value of their liabilities, they therefore use a bond yield to discount future payments.
Investors will be watching the monthly press conference by ECB chief Mario Draghi, looking for hints about possible future European bond purchases.
FORBES: Retail Sales And Jobless Claims Underwhelm But Stocks Stay Positive
This would really up the ante in terms of markets pressure and maybe lead to ban on shorting any Government bond, cash or future!
Though the bond market reacted well to the July inflation numbers, the data left room for doubt and are unlikely, by themselves, to determine the bond market's future.
With all of the conjecture about the true condition of state and local government finances and the likelihood of future municipal bond defaults, straight talk that you can trust comes at a premium.
FORBES: Loose Lips, Lots Of Hype Make Municipal Bonds Look Juicy
Future local currency bond issues in Brazil are going to pay a lot less in interest than they have in several years.
At the same time, individual investors continue to be concerned about the potential for higher interest rates (and thereby lower bond prices) in the future.
LIFFE, and has usurped its dominance of Europe's benchmark bond contract, the German bund future.
Expected to be popular with pension funds and other investors with long future liabilities, the bond was three times oversubscribed.
There can be no such bond between former (and perhaps future) rivals, particularly when they have such marked differences of generation and style.
If they did, I would tell them that the thing that makes me most nervous about the global financial markets is whether the bond market is right about the future.
FORBES: Advisor Loses Sleep Over Bond Market; Thinks You Should Too
Fears that bond yields will be higher in the future are also playing a role.
The excess total return paid to bond investors must be paid back in future years in the form of lower expected returns.
FORBES: The Portfolio Solutions 30-Year Market Forecast for 2012
The value of any such asset (real estate, stock share, or bond) is the sum of the future stream of cash flow or benefits, discounted by the interest rate.
Those rates also would be linked to the 10-year Treasury bond levels and therefore would likely increase in future years.
Bond spreads are always higher on riskier debt because bond holders are being compensated through yield for future losses that may be incurred in a debt default.
FORBES: Betting On High Yield Bonds To Beat Equities In 2012
The loss is only real if you decide to sell the bond before it matures, therefore forgoing the future coupon payments that would offset the loss in principal, and lock in that sales price below par.
On Thursday, Mr Panetta thanked Mr Karzai for visiting US and Afghan wounded at the Walter Reed National Military Medical Center outside Washington, saying the two countries had "created a bond that will not be broken in the future" after fighting side by side.
From a growth perspective, stocks and bonds are valued properly in relation to one another when the stock yield is sufficiently higher than the bond yield to compensate you for the risk of future earnings shortfalls.
FORBES: The Stock Markets Are Forecasting Economic Stagnation, Not Recovery
At stake is the future of two big franchises: James Bond and The Hobbit.
But much other borrowing, by both firms and households, is linked to bond yields, which hang more on market expectations about future interest rates and inflation than on changes in short-term rates.
Harrisburg PA may seem irrelevant to the state of our economy, however, understanding what happened there yesterday is imperative to understanding what Bond investors are likely to contend with in the near future.
Washington now controls long-term bond yields, promises low interest rates years into the future, makes bets on trillions of dollars in bonds, dominates the home-mortgage market and regulates myriad aspects of banking and investing in the U.S. and abroad.
Of course no one can know for sure what the future holds, but we do know that bond markets, like stock markets, do change over time, and what works in one market environment may not work in future markets.
FORBES: 5 Reasons Why Bond Funds Can Help You Navigate Bond Market Headwinds Successfully
"It's great news that he has decided his future is with us, " Cherries boss Kevin Bond told BBC Radio Solent.
应用推荐