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Rising Bond Yields. This Is Just the Start

Clear economic prospects, concerned about the financial crisis, the end of the year began to ideas, in the present, super easy monetary policy a period of decline has the government bond yields racing in the beginning of the year.
In fact, in the face of such background, bond yields, low so long, finally look like they are toward higher, analysts say.
A selling bonds has to promote the yield on the ten-year Treasury bonds rose 15 basis points above, since January about 1.87%. They are about half a year % above a record low in July last year about the eurozone debt crisis concerns hedge debt investors to send.
"Our ten-year Treasury yields may see quite a significant move, I think it might rise as high as 3%, in the next 12 - months," Philadelphia trust investment company President and CEO Michael g rove meal, told CNBC, add the money, are now beginning to turn into bonds and stocks.
The yield on the benchmark national debt has fallen by about 200 basis points, in the past five years, for investors to ignore the financial difficulties and heavy debt issuance in the face of weak economic growth and stock market fluctuations in buying hedge bonds.
Although many analysts predict a blasting of bonds market "bubble" last year, the rate of return is declining in avoid risk.
(read more: go wrong in the 2012 forecast)
But selling in the early 2013 s may see more flavor, analysts say.
"Treasury yields is what, I pay more attention, and the yield on the ten-year Treasury bonds really closed important psychologically 2% mark," David rodriguez, quantitative strategists in daily FX in New York told CNBC Asia "论谈 box."
"All of the chaos in Washington, is a real risk, bond investors are losing patience with the United States Treasury fact, the United States has a huge deficit," he said.
The United States must do more than, if the country has recently through the "fiscal cliff" measures in order to save the AAA debt ratings from the current negative outlook, rating agency moody's investors service warned last week.
Who needs a safe haven?
A sign that risk preference mood, the bond market to safe, effective, in the capital market, the fear of a popular meter VIX index fell nearly 40% last week.
(read more: why VIX recent slump stock may be bad)
K, "lien said in New York of the BK asset management director general manager, bond yields down, VIX index and ear are two of the most interesting development of financial market, in the beginning of the New Year.
Of increased production and Treasury prices decline, which reflects the worry, the federal reserve asset purchase plan ended in the 2013 "fiscal cliff" transactions, and removed some of the market risk, encourage investors diving risky assets, "she said, a research report.
Market began to think about, the federal reserve will end its bond purchase plan before the end of the year, from the federal reserve 12 months after the release of the minutes of the meeting last week, to continue on to behave more and more uneasy.
(read more: with the return of risk preference, national debt is the next step?
However, with the economic recovery is still in the early stages, the unemployment rate is still high, inflation contains, financial market is not expected the federal reserve soon tighten monetary policy.
Analysts say, this means that in the bond market is unlikely to collapse.
"It is possible, but it is not our telephone, say:" Edward cardiac, in California's franklin income portfolio investment of the fund manager, when asked about "论谈" this year's bond market collapse potential.
In the last several months of data represents the U.S. economy, bright screen, December were to join the latest employment data showed that 155000 new jobs, and continue to slow improvement trend.
"The main reason for the rising rate of return, the United States Treasury bonds as a hedge assets role is falling, economy is toward the unstoppable to raise interest rates for the first time," the French agricultural credit bank interest rate strategy global director David Keeble, in a research report said.
"We should not only believe, Treasury yields have been hit bottom, but also implied and actual volatility will begin to rise," he added.
 



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