Sentences with phrase «by flattening the yield»

Finally, by flattening the yield curve, the Fed's purchases have harmed commercial banks, the profits of which come mainly from borrowing short, lending long, and pocketing the difference.

Not exact matches

The flattening of the yield curve could be exacerbated by Chinese sales of 5 - year Treasury notes.

As a result, the yield curve flattened and by the end of December was near inversion for the first time in a decade.

Should our ongoing bull market go from strength to strength, we can anticipate that the yield curve will validate this message by flattening or even rising further, with shorter term yields rising more quickly than longer term yields.

These changes also caused the yield curve to flatten by over 70 bps as the year progressed.

By mid - 2006, they raised the Fed Funds rate to 5.25 %, flattening to invert the yield curve, which collapsed the leverage in the economy in a disorderly way.

-LRB-...) A recent research paper by Claudio Borio at the Bank for International Settlements argues that bank profitability is damaged in a non linear way when interest rates fall and yield curves flatten, and that applies in spades when rates go negative.

When the Fed decides to change course by nudging the fed funds rate higher, it is possible that interest rates in general will rise, and / or that the yield curve may flatten out.

Yields on 10 - year Treasurys were largely unaffected by this dramatic increase in short - term rates, flattening and eventually inverting the yield curve.

In 2001 when the smoothed yield curve flattened, but didn't invert, World EPS again declined by more than 10 percent.

Perhaps more important is the flattening yield curve, as measured by the spread between 10 - year yield and 2 - year yield, which reached its flattest level since 2007.

Over the same tightening cycle that ended in 2006, the impact on the 10 - Year U.S. Treasury Bond yield was 60 bps higher, driving the 1 - Year / 10 - Year slope to flatten by 265 bps (see Exhibit 1).

It remains to be seen if this trend continues after the U.S. curve has flattened by 52 basis points as measured by the yield of the S&P / BGCantor Current 30 Year U.S. Treasury Index.

Despite a typical hiking cycle causing a flattening of the yield curve, we are potentially embarking on a path where yield curves may steepen significantly, as the Fed may be concluding that financial conditions (i.e. stock prices) can only be impacted by engineering a steeper yield curve and higher term premium.

No doubt, the slope of the yield curve, as measured by the spread between two - and 10 - year government bonds, has been flattening since 2014 in both Canada and the United States, and the trend has recently intensified: as we headed into December, the curve sat at its flattest level since the Great Recession.

By mid - 2006, they raised the Fed Funds rate to 5.25 %, flattening to invert the yield curve, which collapsed the leverage in the economy in a disorderly way.

At the pace the yield curve is flattening, it will be inverted by August or September.

As a result, the yield curve flattened and by the end of December was near inversion for the first time in a decade.

The Canadian yield curve flattened by a similar amount.

Two - year yields rose by twenty basis points, flattening the yield curve further.

This leads to the second scenario identified by Straus» and his team: «Contra - indicative yield curve flattening and / or inversion.»

By contrast, squares are flattened in Block Party (2013), maxing out the picture plane and yielding only slivers of a mid-afternoon sky blue surrounding large fields of hot - brick red and a summery white - gray.

Despite the recent interest rate hikes by FOMC, rates are still at historical lows and the yield curve is flattening, driving lender behavior in the search for yield.