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Bonds in sentence

2285 examples of Bonds in a sentence

Growing confidence in economic expansion and falling unemployment has raised investors’ expectation of future inflation, pulling up the nominal interest rate on ten-year bonds.
The expected inflation rate over the next ten years implied by the inflation-indexed bonds rose 0.3 percentage points in the 14 months after July 2016, but then increased 0.8 percentage points in the next five months.
As a result, the government’s net sale of bonds will rise from about $700 billion a year in 2017 to more than $1 trillion in 2019 and about $1.5 trillion in 2027.
Getting the market to absorb those bonds will require higher real interest rates.
The rate on ten-year US Treasury bonds was about 1.8% at the end of October.
There are health-care companies that might bite, hedge funds looking for large-scale projects, and so-called social-impact bonds.
First, sovereign bonds held by banks are treated as risk-free assets under EU rules for calculating banks’ solvency and capital-adequacy levels.
But the debt levels of some European countries relative to their income raise serious questions about whether their bonds really are risk-free.
Second, with low interest rates causing vast sums of money to chase so few opportunities for decent yields, it is understandable that investors have turned to government bonds, thereby driving down yields still further.
But this situation cannot last forever; if the flow of funds slows, or alternative, higher-yielding assets become available, demand for government bonds could drop markedly.
Therefore, in assessing member states’ draft budgets, governments and the Commission would be foolish to assume that low interest rates on government bonds will be around for the foreseeable future.
But it is exposed to other risks, especially if it confines its investments to that slice of the asset pool, US Treasury and high-grade corporate bonds, that American politicians are comfortable having foreigners own.
Nominal bonds are not well hedged against inflation, and, over the long run, assets that are claims to cash without effective control are highly vulnerable to financial vultures.
Buying other countries’ bonds would mean abandoning the goal of keeping real currency values low against the dollar.
Suddenly, the Fund has moved to center stage as the only agency seemingly capable of stemming the vicious downward spiral that is currently seizing emerging-market stocks and bonds.
One idea is debt-based funds offering bonds with more predictable returns based on revenue from new products.
In January, ECB President Mario Draghi effectively sidestepped both obstacles by launching a program of quantitative easing so enormous that it will finance the entire deficits of all eurozone governments (now including Greece) and mutualize a significant proportion of their outstanding bonds.
Because financial markets failed to recognize distinctions in risk among eurozone countries, interest rates on sovereign bonds did not reflect excessive borrowing.
If rich-country central banks can buy long term bonds, then emerging-country central banks can buy dollar-denominated bonds.
A crucial part of this agenda is the removal of constraints on foreign direct investment and foreign investor purchases of equities and bonds, which are far more stable types of capital flows than bank lending.
These are, in a sense, pay-for-success projects, sometimes structured as social impact bonds –formal contracts that tie payments to actual results.
De-Risking RevisitedNEW YORK – Until the recent bout of financial-market turbulence, a variety of risky assets (including equities, government bonds, and commodities) had been rallying since last summer.
If interest rates were lowered beyond a certain point, the dollar would come under renewed pressure and long-term bonds would actually go up in yield.
The decline in government bond prices has exposed the banks’ undercapitalization, while the prospect that governments will have to finance banks’ recapitalization has driven up risk premiums on government bonds.
It will cost much less to recapitalize the banks after the crisis has abated and both government bonds and bank shares have returned to more normal levels.
The ECB should be empowered to buy any amount of Greek, Italian, Spanish, and Portuguese government bonds needed to drive down their yield to near the German rate.
The ECB is stealthily buying government bonds on the secondary market, but its new governor, Mario Draghi, insists that such intervention is temporary, limited, and intended solely to “restore the functioning of monetary transmission channels.”
China started to buy European Union governments’ bonds, and a high-profile Chinese team even went to Greece to buy under-priced real assets.
Since an unlimited number of CDSs could be sold against each borrower, the supply of swaps could grow much faster than the supply of bonds.
The bonds issued by Fannie and Freddie were widely thought to carry an implicit US government guarantee.
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