Bonds

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Bonds have long been viewed as a port in the storm, a low-risk asset class that creates consistent cash flow and helps to balance equity market mood swings. But with rates for Treasuries and other safe haven securities barely keeping pace with inflation—and in some cases falling behind—yield-hungry investors have been forced to purchase fixed-income …

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There’s just no making sense of the government bond market. At a time when strategists are treating Treausrys like a patch of poison ivy growing in the blooming stock market garden, investor money continues to rain in. “When you think you have things figured out and you play your hand, something seems” to change, Kim …

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Traders signal orders on the financial floor at CME Group's Chicago Board of Trade.

2014 was supposed to be the year the bond market came crumbling down. So was last year. So, probably, will next year. The anticipation, of course, is that bond-busting inflation is right around the corner and as the Federal Reserve winds down its monthly bond-buying program—quantitative easing—while the economy improves. Yet despite all the anticipation of money …

Land of confusion

Despite the strong gains this month, many smart investors are more than just a little perplexed, stocks are up, but so are bonds and its not just because the Federal Reserve is buying them. So what’s going on?

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Veteran trader Art Cashin said Thursday’s rebound in the 10-year yield could indicate a stronger economy. Read MoreJeremy Siegel: Here’s what will send yields higher “It would appear that the reversal in the bond market was above internal technicals. It had gotten a little overbought at the point,” Cashin, director floor operations at the NYSE …

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Trader on the floor of the New York Stock Exchange, May 21, 2014.

Bond yields have stymied widespread expectations they would rise this year and analysts seeking a reason may not need to dig any deeper than simple supply and demand. “On the supply side, bond issuance plummeted, down 19 percent year-to-date. Amidst short supply, a surge in positioning and bond inflows has pushed yields lower,” Deutsche Bank said in …

Why yields could fall

As stocks tumbled, so did yields on the benchmark 10-year treasury note. They are now below 2.5 percent, a seven-month low. So what’s driving bond yields lower and will they drop even further. Steve Liesman gives three reasons why they could.

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The new year has not been kind to Bill “Bond King” Gross, but he is not alone. His massive fixed income-focused investment manager Pimco has lagged performance benchmarks, the culture of the firm has come under scrutiny since the departure of CEO Mohamed El-Erian and more than $5 billion has already been pulled by investors in January and February …

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Just days after his noisy exit from Pimco, Mohamed El-Erian has joined the round-the-clock cacophony that is Twitter. The former co-CEO of the Newport Beach, Calif., bond giant posted his first tweet Monday morning at around 10 a.m. to announce his presence. He officially left Pimco on Friday. By late morning, El-Erian had busied himself posting four …

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Global investment management firm Pacific Investment Management Company (Pimco) underperformed its peers last month, according to estimates by data tracker Morningstar, following internal strife at the company and the abrupt exit of CEO Mohamed El-Erian. “Pimco was the only provider among the top 10 firms by assets under management that had outflows in February,” Morningstar …

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Public shouting matches. A tense working atmosphere. A man at the top running amok. These are not the things one usually associates with Pimco, the world’s largest bond manager with $1.9 trillion under management and the largest single fund that alone boasts $237 billion. However, that’s the portrait that emerged from a scathing profile Tuesday …

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Investors have long considered bonds the safe, even dull, part of portfolios. Not anymore. With interest rates likely to continue rising from their historic lows, investors are rightfully concerned about the prospect of a prolonged bond bear market. Yet many financial advisors caution against bailing out of bonds entirely, despite the drubbing the fixed-income market …

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What a difference a year makes. This time last year, traders were talking about a “great rotation” from bonds into equities. For a few short weeks in January, it all seemed to be going to plan, with stellar stock gains starting in earnest. However, it now appears this January was all about a rotation of …

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Buckle up, bond investors. It’s about to get bumpy. As the Federal Reserve begins tapering its economic stimulus program in the weeks ahead, market strategists widely predict that rock-bottom interest rates, which have fueled a 30-year bond market rally, will trend slowly higher starting later this year. “I think an interest-rate rise looks pretty inevitable at this point, …

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Is it time to love one of the market’s most hated asset classes? As the economy improves, fixed income experts are advising investors to exit shorter-term Treasurys and move into the much–maligned long bonds. “The best value in the fixed income market right now is precisely where people have been leaving, and that’s the long …