Gilt-edged stocks see gains as markets rebound

The stock markets have rebounded in the past week, with the Dow Jones Industrial Average and the S&P 500 both reaching all-time highs. This has led to big gains for some of the market's most prestigious stocks, including Goldman Sachs (GS) and JPMorgan Chase (JPM).

Goldman Sachs, perhaps the most well-known investment bank in the world, saw its stock price jump by more than 5% this week. The bank reported record earnings for the second quarter of 2017, with net income coming in at $2.5 billion.

JPMorgan Chase, meanwhile, saw its stock price climb by more than 3% this week. The bank's CEO, Jamie Dimon, recently stated that he expects annual profits to exceed $20 billion in 2017.

Both Goldman Sachs and JPMorgan Chase are considered "gilt-edged" stocks, meaning that they are among the most reliable and profitable companies on the market. Investors who buy these stocks can feel confident that their money is safe and will grow over time.

So far in 2017, the gilt-edged stocks have outperformed the broader market indexes. The Dow Jones Industrial Average has climbed by 10%, while the S&P 500 has risen by 11%. Goldman Sachs and JPMorgan Chase have both fared even better, with gains of 16% and 18%, respectively.

The rebound in the markets is good news for investors of all stripes, but it is especially welcome news for those who own gilt-edged stocks. These stocks offer stability and profitability in times of turmoil, making them a wise investment for any portfolio.

Treasury yields fall on safe-haven buying, pushing prices of longer-dated government bonds higher

Investors shunned riskier assets on Thursday, pushing prices of longer-dated government bonds higher, after U.S. President Donald Trump said the United States would withdraw from the nuclear deal with Iran.

The sell-off in stocks and rally in bonds spilled over into foreign exchange markets, with the dollar dropping to a six-week low against a basket of currencies and bitcoin surging past $9,000 for the first time. [nL3N1SR2MD]

"Risk aversion is rampant today," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin. "You have the Iran story ... and then you also have the president's directive to renegotiate NAFTA."

The yield on the benchmark 10-year Treasury note fell to 2.823 percent, its lowest since Nov. 9, from 2.875 percent late on Wednesday. The yield on the 30-year Treasury bond was 3.109 percent, down from 3.149 percent on Wednesday.

The rally in longer-dated government bonds pushed prices higher and narrowed the gap between shorter-dated and longer-dated yields to their smallest since Feb. 9.

"It's a safe-haven trade," said Kim Forrest, senior portfolio manager at Fort Pitt Capital Group in Pittsburgh. "When you see all this volatility in other markets people tend to buy Treasuries."

Gold rebounds as investors weigh stimulus prospects

Gold prices edged higher on Wednesday as investors weighed the prospects of more stimulus measures by global central banks, easing some concerns about the global economy.

Spot gold was up 0.3% at $1,291.06 an ounce by 0805 GMT, while U.S. gold futures rose 0.4% to $1,296.10 an ounce.

"Gold is being bought as a hedge against any potential fallout from monetary stimulus plans," said MKS PAMP trader Sam Laughlin.

The metal has found support in recent days after falling to a two-week low on Monday as expectations for more aggressive stimulus from the European Central Bank (ECB) faded and comments from Fed officials reinforced expectations for a U.S. rate hike this year.

On Tuesday, ECB President Mario Draghi hinted that the bank could still provide more stimulus to boost the eurozone economy, although he did not specifically mention quantitative easing (QE).

Investors are also keeping an eye on this week's gathering of central bankers in Jackson Hole, Wyoming, where Federal Reserve Chair Janet Yellen will speak on Friday.

Analysts said Yellen's speech is likely to be scrutinized for clues on when the next U.S. rate hike will come and whether it could happen as early as September.

Dollar falls against yen on BOJ speculation

The dollar fell against the yen on Tuesday as traders weighed prospects for more stimulus from the Bank of Japan.

Comments by BOJ board member Yosuke Hosokawa raised expectations of further easing, which tend to weigh on the currency of a country with a strong economy.

At around 03:00 GMT, the dollar was down 0.4 percent at 111.29 yen, after falling to a low of 111.10 yen in early Asian trade.

The euro was also down against the yen, declining 0.3 percent to 128.93 yen.

Bond market volatility falls to 2016 lows

Bond market volatility has fallen to its lowest levels in 2016, according to a recent article by Reuters. The article cites data from the Chicago Board Options Exchange (CBOE) that shows the measure of implied volatility on 30-day U.S. Treasury bills has fallen to its lowest level since January 2016.

This low volatility environment has been a boon to investors, as it has allowed them to lock in low rates for an extended period of time. In addition, it has helped to fuel the record-breaking bull market in stocks, as investors have turned to riskier assets in order to achieve better returns.

While there are some concerns that this low volatility environment could lead to a market correction in the future, most analysts believe that the current bull market still has room to run. As long as economic growth remains strong and inflation remains subdued, bond yields are likely to remain low, which should continue to support stock prices.