The demand for (often narrowly defined) research results, the need for myriad compliance mechanisms, and the gravitational pull toward meeting (narrow) program goals that will, if successful, yield follow-on funding, act together to create a closed system within which there is little time or attention for ancillary pursuits, especially idle exploration.
That sentiment was reflected in the slight decline yesterday in the yield on federal funds futures for August, to 6.53percentt from 6.545 percent.
But with yesterday's economic data, traders signaled, through the market yield on Fed funds futures contracts, that they expected the Fed to raise its benchmark rate above 2percentt again as soon as May.
"The operational issues involving the pricing of some U.S. securities and trading in U.S. repurchase agreements may reduce the yield on the funds, but, at this time, safety of principal is not expected to be affected," the agency said.
The yield on mutual funds that invest in Treasuries is less than half its level of a decade ago, according to Lipper, another research outfit (see chart).In this section Danger everywhere The plan to have a plan A crisis carol Bring out your dead Panda bears Death by low yields Not just rubies and polyester shirts Lightness of being ReprintsBritish fund managers face a similar problem.
This will advance our field more rapidly and yield a higher return on funding investment.
Eight hundred and seventy papers of the sub-sample of 1,600 papers yielded information on funding sources.
While the yields on loan funds make them attractive over the long term, she said, investors who depend on short-term income could be disappointed.
The yields on these funds can approach 4percentt — quite attractive when compared with the miserly returns that banks and government securities were offering.
The yield on the Fed funds futures contract for January is 1.74percentt, reflecting the expected reduction.
