An inversion of the yield curve is important because, when it has happened in the past, it has presaged an economic recession, which means a decrease in GDP from one period to the next. Negative economic growth. Bad news for companies and employees. The previous time the yield curve invert...
From the Treasury strip yield curve, the current r... From the Treasury strip yield curve, the current required yields on one- and two-year Treasuries are i1 = 4.65 percent and i2 = 5.50 percent, respectively. Further, the current yield curve indicates that appropriate one-year discount co...
Any incremental rise in yields along the 3-10 year curve increases interest on the national debt by hundreds of billions of dollars. So, it’s probably not a big deal if the 10-year T-Note yield rises to 1.5%, but, a further rise to 2.5%-3.00% will get the market’s attentionifgr...
“At almost every day in the last 12 years, had you bought two-year TIPS instead of two-year Treasuries, you would have done better buying TIPS because they constantly underprice CPI,” Bloom said. Bloom likened TIPS to a mood ring. Many investors believe that TIPS breakeven rates minus no...