Coverage Universe - Weekly Price Changes May 18-25, 2018
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Message from the Bond Market – Earnings: EMA, FTS, BLX, PBH, SIA
Recollections of interest rates having once risen into the high teens almost 4 decades ago, still linger in investor memories. Presently US 10 year bond yields have become range bound in a 2.5% to 3.25% band that is nowhere close to the 18% level that still haunts investors today. Even for the US Fed to raise rates one or at most two more times is about as high as rates are likely to go for very likely, years.
Yields on US benchmark bonds have been declining from the 3.12% high point on May 15, to a recent close of 2.9%. This happened even as the US central bank raised interest rates by one quarter point last week, and talked about more to come. The US central bank has raised interest rates 7 times since Jan-2014, when US 10 year bond yields last breached 3%, yet 10 year bond yields are lower now than then.
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