Latest news with #BND
CNBC
2 days ago
- Business
- CNBC
This is one of the most attractive opportunities for income, Vanguard says. Here's what the firm likes
Bond investors still have one of the most attractive entry points in decades to generate portfolio income, according to Vanguard. Though off their highs of the year, yields have remained elevated across the Treasury and credit markets. The 10-year Treasury yield is currently around 4.4% and the Vanguard Total Bond Market ETF (BND) , which provides broad exposure to the taxable investment-grade U.S. market, has a 30-day SEC yield of 4.39%. Bond yields move inversely to prices. BND YTD mountain Vanguard Total Bond ETF year to date Fixed income has also been a stabilizer to portfolio performance this year thanks to their higher starting yields, the firm said a recently released third-quarter outlook. "Higher income returns have helped provide a cushion against recent market volatility, keeping bond returns steady amidst larger swings in equities," the report said. Finding opportunity Vanguard sees opportunities across sectors. Within Treasurys, the firm expects a range-bound environment and prefers holding duration exposure in the belly of the yield curve. When it comes to credit, investment-grade corporates and other high-quality credits offer the most compelling risk-adjusted returns, Colleen Cunniffe, Vanguard's head of global taxable credit research, told CNBC. "Investment-grade corporates remain fundamentally sound, with resilient margins, agile supply chains, and steady productivity gains helping them weather recent tariff noise," she wrote in an email. The Vanguard Total Corporate Bond ETF (VTC) currently has a 5.09% 30-day SEC yield and a 0.03% expense ratio. VTC YTD mountain Vanguard Total Corporate Bond ETF year to date Within the segment, Cunniffe likes short-dated financials for their relative value. Banks are also fundamentally sound since they are well-capitalized with conservative liquidity needs, she added. In addition, Vanguard is overweight BBB-rated industrial issuers. Cunniffe's team also favors utilities within the investment-grade space thanks to their stable cash-flow profiles and strong demand for electricity from the rise of artificial intelligence. "This demand has prompted increased capital investment, leading to more bond issuance and, in turn, more appealing valuations," she said. Outside of corporate bonds, Vanguard sees opportunities right now in mortgage-backed securities. While spreads in the bond market have fallen near some of its lowest levels in decades, MBS spreads have been higher than relative to history — which makes their pricing closer to fair value, Cunniffe said. "There are several pockets of the market that offer attractive return potential with more limited prepayment risk, including agency-backed collateralized mortgage obligations (CMOs), agency-backed specified pools, agency commercial mortgage-backed securities, and non-agency but still high-quality AAA-rated residential mortgage-backed securities (RMBS)," she said. The Vanguard Mortgage-Backed Securities ETF (VMBS) has a 30-day SEC yield of 4.21% and a 0.03% expense ratio. VMBS YTD mountain Vanguard Mortgage-Backed Securities ETF year to date. Lastly, Vanguard is overweight asset-backed securities (ABS), preferring higher-quality issuers and sectors that have proven track records though multiple economic cycles. "Structured products, especially ABS, have lagged the spread retracement we have seen in corporate bonds following the recent tariff-related volatility," Cunniffe said. "This, along with continued higher levels of new ABS issuance, have created an attractive relative value opportunity in ABS."
Business Insider
5 days ago
- Business
- Business Insider
U.S. Bond Market Flashes Warning amid Growing Tariff and Inflation Risks
The U.S. bond market is flashing a new warning as tariff risks once again rise. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Market-based measures within the bond market of future inflation have risen to worrisome levels, with some observers pointing to the potential for another round of tariff-driven price gains in the year's second half. On July 18, breakeven inflation rates that reflect expectations of future long-run price increases climbed back to levels last seen in early April, when fears over U.S. President Donald Trump's tariff plans against America's trading partners were at their peak. In recent months, the bond market had looked past the worst possible potential impacts of tariffs. Rising Inflation Expectations The five-year breakeven inflation rate is up four basis points at 2.53%, according to data from FactSet (FDS). That's above the 2.50% level that tends to signal fear of upside inflation risks. Ten- and 30-year breakeven inflation rates are also climbing higher. The rising inflation expectations come amid reports that President Trump is pushing for a minimum 15% to 20% tariff on all imports from the European Union. Analysts say the bond market is trying to determine whether any tariff-driven inflation will be short-lived or long-lasting, and if a rise in inflation will keep the U.S. Federal Reserve from cutting interest rates. The latest economic data showed that inflation in the U.S. is on the rise, registering annualized growth of 2.7% in June, up from 2.4% in May and above the Fed's 2% target. Is the Vanguard Total Bond Market ETF a Buy? (BND). So instead, we'll look at its year-to-date performance. As one can see in the chart below, the BND ETF has risen 3% so far in 2025.
Local Germany
11-07-2025
- Politics
- Local Germany
German-Afghan officials meet over plan to deport Afghans
Germany's interior minister said last week he would seek direct contact with the Taliban administration to devise a plan for deporting criminals to Afghanistan. His comments drew criticism from the United Nations. According to Bild newspaper, August Hanning, head of foreign intelligence (BND) in the early 2000s, and Karzai -- in power between 2001 and 2014 -- met recently in a prestigious Berlin hotel. Karzai has retained "informal" contacts with Taliban authorities, Hanning told broadcaster Welt TV, adding that he had "no official mandate" from the German government. During the meeting, Hanning said he discussed the establishment of an area in Afghanistan to accommodate Afghans sent back to their homeland under German supervision. Germany stopped deportations to Afghanistan and closed its embassy in Kabul following the Taliban's return to power in 2021. Berlin has had only indirect contact with the Taliban authorities through third parties. Advertisement But a debate over resuming expulsions has flared as migration becomes a key issue amid the rise of the far-right Alternative for Germany (AfD) party. Twenty-eight Afghan nationals who had been convicted of crimes were deported in August last year after Germany's previous government carried out indirect negotiations with the Taliban.
Japan Times
05-07-2025
- Politics
- Japan Times
Russian use of chemical weapons against Ukraine 'widespread,' Dutch defense minister says
Dutch and German intelligence agencies have gathered evidence of widespread Russian use of banned chemical weapons in Ukraine, including dropping a choking agent from drones to drive soldiers out of trenches so they can be shot, they said on Friday. Dutch Defense Minister Ruben Brekelmans called for tougher sanctions against Moscow. "The main conclusion is that we can confirm Russia is intensifying its use of chemical weapons," he said. "This intensification is concerning because it is part of a trend we have been observing for several years now, where Russia's use of chemical weapons in this war is becoming more normalized, standardized, and widespread." Germany's BND foreign intelligence agency confirmed the findings, saying in a statement that it had obtained the evidence alongside its Dutch counterparts. The head of the Dutch Military Intelligence Agency (MIVD), Peter Reesink, said the conclusions followed "our own independent intelligence, so we have observed it ourselves based on our own investigations." Reuters has not been able to independently verify the use of banned chemical substances by either side in the Ukraine war. The United States first accused Russia of using chloropicrin, a chemical compound more toxic than riot control agents and first used by Germany during World War I, in May last year. A Ukrainian military engineer inspects a trench near the front lines outside Kupiansk, Ukraine, in December 2023. | REUTERS Ukraine alleges thousands of instances of Russian chemical weapons use. Russia's defense ministry did not immediately respond to a request to comment for this article. Russia has denied using illegal munitions and it has accused Ukraine of doing so. Maria Zakharova, spokeswoman for the Russian foreign ministry, said on Wednesday that the Federal Security Service discovered a Ukrainian cache of explosive devices in the east of the country containing chloropicrin. Ukraine has consistently denied such accusations. The Organization for the Prohibition of Chemical Weapons (OPCW), a disarmament agency in The Hague with 193 member states, said last year that initial accusations leveled by both countries at each other were "insufficiently substantiated." It has not been asked to conduct a full investigation, which must be initiated by member states. At least three Ukrainian deaths have been tied to chemical weapons use, Brekelmans said, while more than 2,500 people injured on the battlefield reported chemical weapons-related symptoms to Ukrainian health authorities. Increased use of chemical weapons by Russia poses a threat not only to Ukraine but to other countries, Brekelmans added. "We must further increase the pressure. This means looking at more sanctions and specifically not allowing them (Russia) to participate in international bodies like the Executive Council of the OPCW," he said. An infantry soldier scans the sky for enemy drones as he stands in a front line trench in the Donetsk region, Ukraine, in April 2024. | REUTERS Reesink spoke of "thousands of instances" of chemical weapons use, while also citing a Ukrainian figure of 9,000. Rotating two-year seats on the OPCW council will be up for negotiation in the coming months. The intelligence findings were presented in a letter to the Dutch parliament on Friday. Russia is a member of the OPCW and, like the United States, has destroyed its declared chemical weapons stockpiles. Increased sanctions could happen in conjunction with the European Commission, which has proposed listing 15 additional new entities and individuals to its sanctions framework, including for suspected use of chemical weapons in Ukraine. The Dutch military and general intelligence agencies, working with foreign partners, say they have uncovered concrete evidence of intensified Russian chemical weapons production. This includes heightened research capabilities and the recruitment of scientists for chemical weapons development, Reesink said. He added that Russian officials have given instructions to soldiers on the use of poisonous warfare agents. "This isn't just some ad-hoc tinkering at the frontline; it is truly part of a large-scale program. And that is, of course, also concerning because if we don't clarify and publicize what Russia is doing, it's highly likely these trends will continue," Reesink said. He called the use of chemical weapons by Russian armed forces "almost standing operating procedure." "We specifically linked the use of chloropicrin to improvised munitions, such as filled light bulbs and empty bottles that are hung from a drone. When it comes to teargas, we see that they are also misusing and converting existing munitions to act as the carrier for the gas," he said. Chloropicrin is listed as a banned choking agent by OPCW, which was created to implement and monitor compliance with the 1997 Chemical Weapons Convention (CWC). It can cause severe irritation to the skin, eyes, and respiratory tract. If ingested, it can cause burns in the mouth and stomach, nausea and vomiting, as well as difficulty breathing or shortness of breath.
Time of India
04-07-2025
- Politics
- Time of India
Putin using chemical weapons in Ukraine? German and Dutch intel make shocking claim against Russia
In a stunning revelation, Dutch and German intelligence agencies have reported that Russia is using banned chemical weapons in Ukraine. The findings, based on independent investigations, include reports of choking agents dropped by drones to flush Ukrainian soldiers out of trenches, exposing them to deadly gunfire. Dutch Defence Minister Ruben Brekelmans and the German BND say this is part of a disturbing trend, the normalisation of chemical warfare on the battlefield. Ukraine has reported over 9,000 incidents involving toxic substances, including chloropicrin, a WWI-era chemical more toxic than riot control agents. However, Russia has denied the use of such weapons and blames Ukraine, though Kyiv and Western officials reject those claims. Show more Show less
