Bonds
in sentence
2285 examples of Bonds in a sentence
National risk premia would then disappear, and German savers would have no problem investing their savings in the eurozone’s periphery, knowing that the German government would ultimately underwrite these countries’ government
bonds.
French and German banks have been able to sell their holdings of Greek government bonds, largely to the ECB, which has acted as bond purchaser of last resort.
In 2008 and 2009, the Chinese purchased US government
bonds
at a rate of $17 billion a month.
Each month, China sold a net sum of about $7 billion in US government
bonds.
“Gender dialogue sessions” that we host are also strengthening family
bonds.
In particular, sovereign debt in the eurozone was deemed riskless: banks had only to hold minimal reserves against member countries’ bonds, which the European Central Bank accepted on equal terms at its discount window.
The measures introduced by the ECB went a long way toward relieving banks’ liquidity problems, but nothing was done to reduce the large risk premiums on government
bonds.
That first war among socialist states shattered the myth of inviolable “fraternal”
bonds
between the Soviet Union and the captive nations of Eastern Europe.
The fiscal problem could be dealt with by issuing generally guaranteed European bonds, which might be a temporary measure, restricted to the financial emergency.
With no current-account surplus, China would no longer be a net purchaser of US government
bonds
and other foreign securities.
Moreover, if the Chinese government and Chinese firms want to continue investing in overseas oil resources and in foreign businesses, China will have to sell dollar
bonds
or other sovereign debt from its portfolio.
The net result would be higher interest rates on US and other
bonds
around the world.
Prospective buyers of Italian ten-year
bonds
should look at the longer-term impact of deficit cutting on the debt level, which is pretty certain to be positive.
In the run-up to the crisis, there are no recorded negative real returns on government bonds; since the crisis, the incidence of negative returns increases and has remained high.
But the figure also shows that the 2010-2016 period is not the first episode of widespread negative real returns on
bonds.
In addition to €130 billion in loans (more than 40% of Greek GDP, on top of the €110 billion loaned to Greece in 2010), a 50% “haircut” has been imposed on Greece’s private creditors, and the European Central Bank has waived expected returns on its holdings of Greek
bonds.
And this is not a zero sum situation, with America’s gains equal to Europe’s losses: the uncertainty is bad for investment on both sides of the Atlantic, and if lack of confidence in the dollar leads to a shift out of American
bonds
and stocks, the American economy could be weakened further.
The ECB has promised to buy Italian and Spanish sovereign
bonds
to keep their interest rates down, provided these countries ask for lines of credit from the European Stability Mechanism and adhere to agreed fiscal reforms.
And the international bond market has expressed its approval by cutting interest rates on Italy’s ten-year
bonds
to 4.8%, and on Spain’s to 5.5%.
If Italy and Spain have budget surpluses and declining debt/GDP ratios, financial markets will reduce the interest rates on their
bonds
without the proposed ECB purchases.
That would remove the serious risk that the ECB could start buying
bonds
on the basis of agreed fiscal packages, and then be forced to react if governments fall short on implementing them.
Foreign investors’ purchases of emerging-market sovereign and corporate
bonds
almost tripled from 2009 to 2012, reaching $264 billion.
Despite innovation in the financial products channeling ESG investment, the supply of ESG instruments, such as green bonds, remains insufficient.
Because the current-account surplus is denominated in foreign currencies, China must use these funds to invest abroad, primarily by purchasing government
bonds
issued by the United States and European countries.
If that happens, China will no longer be a net buyer of US and other foreign bonds, putting upward pressure on interest rates in those countries.
But they should be careful what they wish for, because a lower surplus and a stronger renminbi imply a day when China is no longer a net buyer of US government
bonds.
Despite repeated assertions by Fed officials that they are committed to near-zero short-term interest rates for the foreseeable future, hints of QE tapering have caused yields on ten-year US Treasury
bonds
to rise by 100 basis points from this year’s lows.
But China has been taking concerted steps to expand the use of the renminbi, including signing swap agreements with more than two dozen countries, actively encouraging offshore markets for renminbi deposits and bonds, and moving cautiously to open domestic capital markets.
At first, both the authorities and market participants treated all government
bonds
as if they were riskless, creating a perverse incentive for banks to load up on the weaker
bonds.
On the contrary, they would compare favorably with the
bonds
of the United States, the United Kingdom, and Japan.
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