X hits on this document

69 views

0 shares

0 downloads

0 comments

20 / 24

F I R

Domestic High Yield and Non-U.S. Bonds Outperform

U.S. bond returns were mostly posi- tive. Despite the Federal Reserve’s ongoing Treasury purchases and a

  • ight to safety triggered by overseas

developments, yields were pressured higher by positive economic data and concerns that rising food and energy prices portended more widespread ination. Investors in Treasury ination protected securities (TIPS), however, beneted from heightened ination expectations.

Other segments of the U.S. bond market fared well. High yield bonds did best as they continued to attract investors with relatively large coupons. Higher-quality corporate bond returns were more subdued. Municipal bonds produced modest gains amid muted issuance. Agency mortgage-backed securities also rose slightly.

Non-U.S. bond returns were posi- tive. Japanese bond yields rose amid concerns about rebuilding costs. The yen strengthened to post-World War II highs before falling sharply due to global central banks’ currency market intervention. Bond yields rose in large European economies, though a stronger euro and pound lifted returns to U.S. investors in dollar terms.

U.S. Bond Market Performance

International Bond Market Performance

15%

13.64

12%

12

10

8.63

8.65

8

9

6

6

3

0.42

0.51

3.77

5.12

1.63

4

2

1.80

1.02

0

0

3 Months

1 Year

3 Months

1 Year

Total Returns for Periods Ended March 31, 2011

Total Returns for Periods Ended March 31, 2011

Barclays Capital U.S. Aggregate Index Barclays Capital Municipal Bond Index Credit Suisse High Yield Index

Barclays Capital Global Aggregate ex U.S. Dollar Bond Index

J.P. Morgan Emerging Markets Bond Index–Global

Trends in Interest Rates

21%

18

15

12

9

6.96%

6

3

0

3/06

9/06 3/07

9/07

3/08

9/08

3/09

9/09

3/10

9/10

    • 3.85

      %

    • 3.06

      %

    • 0.09

      %

3/11

Credit Suisse High Yield Index*

Barclays Capital Municipal Bond Index*

90-Day Treasury Bills

Barclays Capital U.S. Aggregate Index*

  • *

    Yield-to-worst

Stock and Bond Market Performance

28%

26.95

25.79

21

15.65

15.98

14

13.64

10.90

9.36

7.94

7

5.92

4.83

3.45

3.77

5.12

0

0.42

0.51

1.63

  • -

    7

3 Months

1 Year

Total Returns for Periods Ended March 31, 2011 Unlike stocks, U.S. government bonds are guaranteed as to the timely payment of interest and principal.

S&P 500 Stock Index S&P MidCap 400 Index

Nasdaq Composite Index Russell 2000 Index

MSCI EAFE Index Barclays Capital U.S.

Barclays Capital Municipal Bond Index Credit Suisse High Yield Index

Aggregate Index

20 www.troweprice.com

Document info
Document views69
Page views69
Page last viewedFri Dec 09 10:33:27 UTC 2016
Pages24
Paragraphs2249
Words16310

Comments