The Traderszone Network

Published in TZ Latest News 5 November, 2016 by The TZ Newswire Staff

Rising Bond Yields Boost Insurers, Have Negative Impact on Stock Indexes

LIFE INSURERS LEAD FINANCIALS HIGHER … Rising bond yields continue to give a boost to financial stocks like life insurers. Bear in mind that premium income in insurance stocks is invested mostly in fixed income markets. Higher bond yields mean higher income. Life insurers are leading the financial sector higher today. Several of the big life insurers are seeing nice gains after beating earnings estimates. Chart 1 shows the Dow Jones US Life Insurance Index ($DJUSIL) climbing more than 2% today and nearing a new 2016 high.

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