Bonds
in sentence
2285 examples of Bonds in a sentence
In the meantime, the European Central Bank is intervening in the EFSF’s stead, and quite successfully so far: market tensions have eased markedly since the ECB began buying
bonds
on August 8.
It has a president who has encouraged the idea of a government shutdown, fueling doubts about the liquidity of the market in US Treasury
bonds.
Recent volatility in stocks and
bonds
suggests that these risks could prove vexing to financial markets as well.
The US and Japan might be among the last to face the wrath of the bond-market vigilantes: the dollar is the main global reserve currency, and foreign-reserve accumulation – mostly US government bills and
bonds
– continues at a rapid pace.
In the meantime, liquidity provision by the European Central Bank is the only way to prevent a collapse in the price of
bonds
issued by several European countries.
Financial markets, recognizing this possibility, raised the risk premium on Spanish and Italian
bonds
to unsustainable levels.
Germany and the other eurozone members with AAA ratings will have to decide whether they are willing to risk their own credit to permit Spain and Italy to refinance their
bonds
at reasonable interest rates.
That is why the
bonds
issued by the eurozone’s rescue fund, the European Financial Stability Facility, are trading at a substantial premium relative to German debt, while efforts by Klaus Regling, the EFSF’s head, to convince China, Japan, and other Asians to buy the
bonds
have gotten nowhere.
Holders of
bonds
of the eurozone’s member states have now been put on notice that, when the going gets tough, the real sovereign, “We, the people,” might be asked whether they actually want to pay.
While governments may be reluctant to take on new debt, private investors seeking higher returns than government
bonds
can offer have always participated in infrastructure financing.
It would be far better simply to require banks to raise much more of their resources in equity markets instead of through
bonds.
In fact, Sanusi’s suspension spurred a financial-market panic, with the naira plummeting to a record low against the dollar, as foreign investors sold off
bonds
and equities.
The Greek government currently must pay 25% for its ten-year bonds, which are trading at a 50% discount in the secondary market.
The banks that had loaned them the money replaced the old debt with new
bonds
at par value, which averaged 50% of the old bonds, and the US government provided some sweeteners.
It cannot create the common
bonds
that define Europe and hold it together.
If the ties that have bound Europe together for two generations are fraying, what alternative
bonds
can be found?
China’s low official government debt largely reflects the role of currency in assuming quasi-fiscal liabilities – not only the write-off costs incurred from reforming state-owned banks, but also the takeover of banks’ bad debts via note financing and the purchase of asset-management companies’
bonds.
Chile and China put their savings abroad without mixing them with knowhow – they buy stocks and
bonds
– and as a consequence get just the 4-5% or less that Piketty assumes.
Most, however, are invested in dollar-denominated financial claims – above all, bills or
bonds
issued by the US Treasury.
When yields on risky
bonds
decline toward those on safe assets, it is fair to conclude, he argues, that someone is taking on excessive risk.
Moreover, during the euro’s existential crisis in July 2012, Merkel supported European Central Bank President Mario Draghi’s initiative to create an “outright monetary transactions” mechanism, whereby the ECB could purchase the
bonds
of struggling eurozone countries.
Declining investment rates in Japan, the newly-industrializing Asian economies, and Latin America, in that order of importance, have fueled the flood of savings into US government bonds, US mortgage-backed securities, and US equity-backed loans – the capital-account equivalent of America’s enormous trade deficit.
No one shows up at Treasury auctions to buy US bonds, and fewer foreigners buy US stocks or companies and real estate.
Unfortunately, the same cannot be said for the company’s employees, past and present, who reap no benefits in their paychecks or pensions (which are actually being eroded by the low yields on government
bonds
across Western countries).
Over the past 20 months, the yield on ten-year Treasury
bonds
has more than doubled, from 1.38% to 2.94%.
About half of the 1.56-percentage-point rise is attributable to an increase in the real interest rate, as measured by the inflation-indexed ten-year Treasury bonds, whose expected real yield has risen from zero in July 2016 to 0.82% now.
The interest rate charged on home mortgages reflects the long-term yield on Treasury bonds, with the rate for 30-year mortgages rising a full percentage point during the past 20 months.
The Fed bought Treasury
bonds
and mortgage-backed securities, increasing its balance sheet from $900 billion in 2008 to about $4.5 trillion now.
Those bond purchases bid up the price of
bonds
and caused their yields to decline.
The Fed is now in the process of shrinking its balance sheet, forcing the market to buy more
bonds
and therefore raising interest rates.
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