More on the J.E.C. testimony day yield curve conundrum:  Dan Gross points to a terrific Smart Money article all about the yield curve.

Yield_curve_2


 

Its a great primer about various types of Yield Curves:  Normal, Steep, Inverted, Flat or Humped.

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Source:

The
Living Yield Curve

One Bond Strategy
http://www.smartmoney.com/onebond/index.cfm?story=yieldcurve#normal

Upside-Down Interest Rates
Bad news for the U.S. that is worse news for the
world.

Daniel Gross
Slate, Friday, June 3, 2005, at 3:31 AM PT
http://www.slate.com/id/2120161/

Category: Economy, Fixed Income/Interest Rates

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “All about the Yield Curve”

  1. spencer says:

    Since 1954 — when fed funds data first started — the average spread between funds and the 10 year t bond
    has been 0.8%. That does include the periods of a steeply negative curve.

    What is unusual is not where the yield curve is now.
    Rather, it is where it was a year ago when it was over 4% — except for a few months in 1989 that was an all time high.

  2. anne says:

    Excellent Spencer.