Rationally, investors should eventually respond by demanding higher yields to compensate for the currency risk.
Reduced stock availability continues to buoy prime yields to 8.0%-9.0% compared with 8.5%-9.5% late last year.
If demand is low they will have to pay higher yields to attract investors.
So, I decided to take a look at stock yields to see what you could get.
One should keep in mind that it would take much higher yields to reverse the major downtrend.
FORBES: The Week Ahead: Should You Listen To The Fed Whisperers?
In theory, such a huge increase in purchases should cause bond prices to rise and yields to fall.
At current yields, the five and 10 year Treasury bond are returning negative yields to investors after inflation.
From the long-term chart, it would take much higher yields to suggest that this major trend has changed.
In today's febrile markets any misstep could cause the dollar to tumble and Treasury yields to soar further.
If anything, growth should cause yields to fall due to a stronger currency and a lower risk of default.
The aggressiveness of the plans surprised investors, sending stocks whipsawing, the yen tumbling and government-bond yields to record lows.
Government bonds, with the exception of Germany, sold off sharply yesterday, causing yields to rise across the Euro zone.
He forecasts U.S. 10-year Treasury yields to hit the 3.4% level by year-end.
FORBES: Fed Watch 2012: What Does Ben Have Up His Sleeve Now?
They are not bonds, yet they pay attractive yields to the income-hungry investor.
One thing that has changed since the Great Recession of 2008-09 is the ratio of muni yields to Treasury yields.
Bonds issued by Portugal fell sending yields to a record on Monday, while Greek and Irish paper was similarly trashed.
FORBES: Bond Prices Weaken As Stocks Rebound On Merger Monday
There is even some concern that the revenge of the weeds will cause agricultural yields to fall for some crops.
FORBES: Survival Instinct: Businesses Must Watch Out For Mother Nature
But with 10-year Treasurys yielding 1.6%, basic laws of physics start making it tough for yields to fall much more.
The combination of a zero interest rates policy and quantitative easing is what has pushed government bond yields to historical lows.
Normally the yield curve is positive because investors demand higher yields to compensate for the risk that inflation might pick up.
All of which is ample reason for bond yields to fall a lot and means that they have further to fall.
What should you compare these earnings yields to in order to get some idea whether they are excessively high or low?
FORBES: The Stock Markets Are Forecasting Economic Stagnation, Not Recovery
It will be interesting to see how this debate plays out and whether Mayer yields to the criticism surrounding her decision.
The generalized imagery of Africans yields to portraits of actual individuals, and here the range of depiction and characterization is extremely broad.
The move sent the yen plunging and bond yields to record lows.
Treasury prices spiked Wednesday, sending yields to their lowest points this year.
FORBES: S&P 500 Dips Below 2010 Close As Global Crises Continue
It is very abnormal for bond yields to trade below headline inflation.
FORBES: Fed Watch 2012: What Does Ben Have Up His Sleeve Now?
The dip in demand for British Airways flights has forced a switch in strategy at the premium airline from yields to volume.
CNN: BA: 'Absolutely no signs of recovery' in airline industry
If investors lose confidence in a country's fiscal prospects, their fear can become self-fulfilling by pushing up bond yields to unsustainable levels.
ECONOMIST: Eurobonds could restore confidence, but at a cost
Unsurprisingly, plot construction yields to a stream of bigger and better sensations.
应用推荐