News That Matters

Tag: Bond

‘Bond King’ Jeffrey Gundlach says interest rates have bottomed for the year

‘Bond King’ Jeffrey Gundlach says interest rates have bottomed for the year

Finance
Jeffrey Gundlach speaking at the 2019 SOHN Conference in New York on May 6th, 2019.Adam Jeffery | CNBCDoubleLine CEO Jeffrey Gundlach believes the bottom for interest rates is in for 2019.Growing fears about a possible global economic slowdown prompted Treasury yields to hit their historic lows a few weeks ago. The so-called bond king said yields won't go any lower this year."It's not a great idea to bet on low interest rates," Gundlach said in an investor webcast on Tuesday. When asked if he would buy 10-year Treasury now, Gundlach said "absolutely not."The yield on the benchmark 10-year Treasury breached below 1.5% in August, while the 30-year Treasury bond yield fell below 2% for the first time ever as the U.S.-China trade war escalated.The Federal Reserve conducted a repurchase operati...
Revealed: Next James Bond film has been named

Revealed: Next James Bond film has been named

Entertainment
By Tom Gillespie, news reporter The producers of James Bond have revealed the upcoming film will be called No Time To Die.Daniel Craig will star in the secret agent's 25th outing, released in the UK on 3 April 2020. The title was revealed in a tweet from the official 007 account.Oscar-winner Rami Malek has been confirmed to play the villain, with Fleabag writer Phoebe Waller-Bridge due to add a bit of comedy magic to the script. Image: Daniel Craig last turn as Bond was in Spectre in 2015 Other new cast members include Captain Marvel star Lashana Lynch and Game Night actor Billy Magnussen, while Ralph Fiennes, Ben Whishaw, Rory Kinnear, Naomie Harris and Jeffrey Wright will all rep...
Bond market close to sending biggest recession signal yet

Bond market close to sending biggest recession signal yet

Finance
Scott Olson | Getty ImagesAs Wall Street economists up the odds for a recession in the coming year, the bond market is sending its own scary warning about an economic downturn.Various parts of the yield curve have been inverted, but the traditionally watched 2-year to 10-year spread looks set to invert any day now, with the curve at its flattest level since 2007.The 10-year yield, at its low yield of 1.64% Monday came less than 6 basis points above the 2-year yield, which was at 1.58% in afternoon trading. The spread broke below 10 basis points last week. An inverted curve simply means a shorter-term interest rate is higher than the longer-term one that it is being compared too, and that inversion has been a reliable recession signal. "It's the whole idea that the Fed is making a mistake. ...
Dynamic bond funds with high-quality, long-duration assets likely to do well, says Dhawal Dalal of Edelweiss MF

Dynamic bond funds with high-quality, long-duration assets likely to do well, says Dhawal Dalal of Edelweiss MF

Finance
"It will be prudent to check with the fund manager and his or her views on the bond market before investing and ensure that they are in alignment with investor’s own understanding," says Dhawal Dalal, CIO-Fixed Income, Edelweiss Mutual Fund in an interview to ETmutualfunds.com .After a bad patch in the last two years, dynamic bond funds are back in focus. Many mutual fund advisors are recommending these schemes to their clients. Are they the best choice at this point? Yields of Indian Government Bonds (IGBs) and longer-dated AAA-rated PSU/PFI bonds have been trending lower since March 2019 as the Reserve Bank of India switched its focus from containing inflation to supporting economic growth. To address slowing economic growth, the RBI has lowered the repo rate by 75 basis points to 5.75%
Bond funds in India embrace duration as rate cut bets intensify

Bond funds in India embrace duration as rate cut bets intensify

Finance
By Subhadip Sircar and Ragini SaxenaBond funds are adding to duration in India as bets that the central bank will keep cutting rates move out on the curve. A second strategy is to rotate to corporate debt ahead of yield compression. A majority of the seven money managers surveyed by Bloomberg favor the 10-15 year part of the sovereign curve ahead of the Reserve Bank of India’s policy decision on June 6. The preference for duration reflects expectations that the central bank will cut rates beyond the sole 25-basis point reduction being forecast by economists through 2020. The RBI’s thrust on beefing up cash in the banking system and last week’s thumping election victory for Prime Minister Narendra Modi are also reinforcing the appeal of debt with long maturities for money managers. “Rate cu