Tag: yield

Is Gold the New High Yield?

  • Markets
  • Charlie Bilello

“Amazingly, people are paying Switzerland to warehouse their money for 10 years…That makes gold a high-yielder, because it yields zero” – Jeff Gundlach Jeff Gundlach is correct. At 0%, Gold is now yielding more than two year government bonds in many countries in Europe and has an equivalent yield to that of Japan. Welcome to […]

The Greatest Trick the Stock Market Ever Pulled

What if everything you thought was true about markets was a lie? That is the question everyone should be asking today. It defies logic, but investors (if you can call them that) are now paying over 1% for the privilege of locking their money up in Switzerland government bonds for one year. You read that […]

The bond market continues to make history as global deflationary pressures and record central bank easing are driving yields to unfathomable levels. Back in November I wrote about “The Race to 0%.”  It has now become a race to negative yields. Let’s take a look at a few examples from yesterday. 1) The 30-year U.S. […]

The Race to 0%: Plunging Yields Across The Globe

  • Fed, Markets
  • Charlie Bilello

We are seeing history in the making in the bond market today, with an all-time low in 10-year yields in each of the following countries: Germany: 0.70% France: 0.98% Italy: 2.03% Spain: 1.86% Netherlands: 0.81% Portugal: 2.80% Switzerland: 0.31% Japan 0.41% Source: Bloomberg What do each of these countries have in common? Slow to negative […]

When Reaching for Yield Goes Wrong

“The market-formerly-known-as-high-yield’s average yield  fell to 4.9% as of the close of the day Monday, according to a benchmark Barclays U.S. high-yield index, while the equivalent Bank of America Merrill Lynch index fell to 4.94%, both new all-time lows.” – Barrons, June 17, 2014 “There is some evidence of reach for yield behavior.” – Janet […]