Questions tagged [yield-curve]

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2
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1answer
109 views

Trying to understand the U.S. yield curve and global inflation

With the COVID crisis the FED has lower interest rates a lot: Now, inspecting the US yield curve: It seems to be that this is a normal curve that doesn't flatten too much at the end. Is this correct?...
0
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1answer
59 views

Why does a steepening bond yield curve usually result in a price increase for stocks in the financial sector?

ARK Invest CEO/CIO Cathie Wood mentioned on 2021-01-08: We're seeing the yield curve steepens, i.e. long rates are going up but short rates are not, because the Federal Reserve is holding them down. ...
1
vote
1answer
69 views

Confusion about bonds, and the relationship between floating rates, prices, credit risk, and collateral

I'm trying to wrap my head around bonds. There are many types of bonds, but to put it simply, it can either be floating rate or fixed rate, and it can also have collateral to account for the credit ...
5
votes
4answers
264 views

Which yield curve is inverting?

All over the news I read that the yield curve is inverting. I thought they were talking about the US Treasury Bond yield curve. This seems to be the case when I read this article. However there are ...
0
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3answers
163 views

Does yield curve inversion refer to the shape of the curve, or just its sign?

Yield curve inversion has recently been talked about as an indicator for recession. Mostly, I've heard this described as "10-year Treasury rates fall below 2-year Treasury rates." I would expect ...
1
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4answers
221 views

Locking in rates during yield curve inversion

While reading multiple articles about yield curve inversion, a common theme is that investors seeing an economic slowdown in the future which generally means lower interest rates so they want to lock ...
2
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2answers
274 views

US treasuries yield on economy news

When looking at say Bloomberg or CNBC news on television, one often sees different yields for US treasuries pop up. For example: What does this represent? How are these numbers determined? It can't ...
0
votes
1answer
106 views

What are the dates that the yield curve inverted?

For the purpose of investing, I've been reading about the yield curve inversion and what it might mean about the economy. Unfortunately, all articles that I was able to find by searching on Google ...
24
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5answers
8k views

Why invest in long term government bonds when the yield curve is inverting?

The New York Times has noted that the US is heading toward an inverted yield curve, which is one of the precursors for a recession. The yield curve is said to be inverted when long term government ...