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Questions tagged [yield-curve]

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How to reconcile bond duration with yield responses in Long-Term vs Short-Term bonds?

I'm struggling to reconcile two aspects of bond behavior in response to interest rate changes: Longer-term bonds have higher durations, implying greater sensitivity to interest rate changes, which ...
StatsScared's user avatar
1 vote
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Clarification on the 6-Month Yield Point on the US Treasury Yield Curve

Can the 6-month yield point on the US Treasury Yield Curve represent yields from securities originally issued with longer maturities (e.g., 1 year) but now have only 6 months left until maturity? ..Or ...
StatsScared's user avatar
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What drives a yield curve shape?

I understand there are many factors that affect yield curve shape, let me help understand one. One is that 30y rate is an average 2y rate for the next 30y, with some additional premium. That premium ...
Medan's user avatar
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How is the yield of this particular bond calculated?

I am looking at this particular bond of coinbase company via Interactive Brokers website. Coinbase Bond ISIN : USU19328AA89 The rate of the bond is 3.4 so at the ask price of the bond at 62 the yield ...
Saugat Awale's user avatar
3 votes
2 answers

Unusually inverted yield curve for time deposits

I found out the following time deposit rates of a bank: I understand the meanings behind inverted yield curves. However, the rates seem very unusual to me: The 18-month rate is far lower than the 15-...
tonychow1997's user avatar
1 vote
1 answer

Lag between Fed Announcement and Actual Implementation

After the Fed announces its new target range for Fed Funds, is there a set number of days before actual implementation? If not, is there a convention, like within a week? I'm wondering, because the ...
kfmfe04's user avatar
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1 answer

What is the spread between maturities called?

Credit spreads typically compare two bonds of the same maturity. For example, a 10-year US Treasury yielding 3% might be compared to a Corporate Bond yielding 4.5% and we'd say the spread was 1.5%. ...
Ben Parizek's user avatar
19 votes
4 answers

How Is There A Yield Curve For Treasuries?

Why would anyone buy a 1 yr T-Bill with a return of 1.25% when you get double that on a 30-year T-Bond? Where is the risk and/or liquidity premium coming from? There's a highly liquid, secondary ...
EricP's user avatar
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What does it mean that UST10 have risen from 1.2 to greater than 1.7 over the last half year?

I'm a newbe in bonds market, but I'd like to ask what does it indicate that UST10 have risen from 1.2 to greater than 1.7 over the last half year? Does it mean that the bond market foresees high ...
Daniel's user avatar
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How to obtain zero-rate(spot-rate)curve from YTM matrix

I'm studying about the yield curve now. In particular, I am studying bootstrapping methods to obtain spot rate curve(zero curve). If several bonds and their coupon rate are given, I know how to ...
junhui's user avatar
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2 votes
1 answer

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?...
Martel's user avatar
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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. ...
Franck Dernoncourt's user avatar
1 vote
1 answer

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 ...
Kakeo's user avatar
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5 votes
5 answers

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 ...
WTeach's user avatar
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3 answers

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 ...
jhch's user avatar
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1 vote
4 answers

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 ...
Skrrrrrtttt's user avatar
3 votes
2 answers

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 ...
user123124's user avatar
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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 ...
Zesty's user avatar
  • 625
25 votes
5 answers

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 ...
JoJo's user avatar
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