bond yields

How Risky Are Your Bonds? Here's How to Tell

Interest rates have to start rising again soon, and while higher rates are generally good for people looking to put new money to work in the bond market, those who already own bonds could take a bath on their supposedly "safe" investments.

Suddenly, Bonds are Riskier than Stocks

Bonds have outperformed stocks over the last 30-year period, but things are changing and bonds are no longer the safe haven they once were. In fact, bonds already look overvalued, and if rock-bottom interest rates keep moving higher, bond funds could plunge.

A 'Safe' Way to Lose Money: Why Not to Buy Bonds Now

About a month ago, the Germany government sold $5 billion worth of Eurobonds that paid an average interest rate of -- get this -- negative 0.0122%. That's right: These bonds are guaranteed to lose value. So why did they sell? In a word, it's all about risk.

The Higher the Debt Ceiling, the Deeper the Hole

When some new members of Congress recently declared their resistance to raising the nation's debt limit, it triggered warnings of "catastrophic consequences." Problem is, the higher this ceiling gets, the deeper the hole that the U.S. is digging itself into.

Why Interest Rates Keep Rising, Despite QE2

The Federal Reserve is doling out billions to buy bonds in hopes of keeping interest rates low and stimulating the economy. However, several powerful forces are working against that low-rate strategy, ranging from investor psychology to global competition for capital.

A Rising Economy Is Pushing Down Treasurys

Doomsayers insist the recent rapid rise in yields signals the nation's creditors finally getting fed up with financing U.S. deficits. But a stronger argument can be made for blaming the better-than-expected economic reports that have been piling up recently.

Markets Are On the Rise Since the Fed Launched QE2

Republican leaders may be worried about the Federal Reserve's second round of quantitative easing, but the stock and credit markets are not: They have improved significantly since the QE2 plan was announced, Bloomberg reported Friday. But can that rally be solely attributed to QE2?

Tax Cut Deal May Incite Bond Vigilantes, 'Dr. Doom' Warns

Nouriel Roubini, the NYU economics professor who has earned the nickname "Dr. Doom" for his predictions, says he's concerned the tax cut compromise struck by President Obama and GOP leaders could expose the U.S. to bond vigilantes who will drive up bond yields, resulting in higher borrowing costs for the federal government.

As the Dollar Weakens, Commodities Shine

Market watchers lately have loudly proclaimed the end of the dollar, which has left investors looking to stay ahead with a choice of betting on stocks, which have 17% fallen in the last decade, or staying "safe" in very low-yield money market funds. But there is an alternative: Commodities.

Forget Stocks. This Year, Bonds Have Had More Fun

It's no secret that stock investors have suffered through roller-coaster volatility this year for no real return, while bond investors have been having a ball. The longest-dated Treasury mutual funds have returned nearly 20%. Stocks, meanwhile, have done zilch.

Does Investor Gloom Mean
It's Time to Buy?

Investors' spike in gloom seems out of line with broader economic developments that continue to be mixed. So stocks may be undervalued because investors are being overly conservative -- and this could be a good time to buy.

Stocks With Safe Yield Can Comfort Investors

The weakening stock market has investors fleeing for safe havens, like bonds. But some companies have a lot of cash, high operating margins and stocks with high yields -- far better ones than most bonds currently.

Falling Bond Yields Could Mean Bear Market for Stocks

Are we headed for bear market in stocks? Rising bond prices indicate that we are. Treasury bond yields have taken a hit over the past three months and have fallen more than 1.2% -- a sign, according to an economist, that a bear market in stocks could be closer than we realize.

Japan's Cheap Debt Could Cost the World Dearly

Fueled by a high domestic savings rate, Japan has piled up debt to epic levels over the last few decades. But as its population ages and its national savings rate drops, the days of cheap debt are coming to an end -- and the global economy will feel the effects.