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The drop in mortgage rates, coupled with a steep decline in government bond yields, is prompting investors to reconsider riskier, albeit higher-yielding investment-grade corporate bonds.
The number of income securities paying reasonable yields is shrinking as corporations, flush with cash, are retiring high-yielding securities.
The recent rise in yields is overdetermined.
The difference between those two yields is called the spread.
But what happens to bond yields is key now.
The effect the ban will have on yields is unclear.
But simply chasing dividend yields is not advisable.
In the short run, any uptick in gilt yields is likely to be small.
The difference between 10- and 30-year yields is now a full percentage point.
The jump in yields is the end of a long, long story.
The difference between the two yields is now 0.59 percentage points.
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