Sentences with phrase «flattening the yield curve»

«The spread between the 2 - year and 10 - year Treasury is now the tightest it's been since 2007,» said Rob Morgan, chief investment officer at Sethi: «The flattening yield curve in 2007 was a harbinger of the Great Recession of 2008.
Those rate hikes, they said, are in and of themselves acting to flatten the yield curve.
A flattening yield curve is often a feature of a rising rate environment and can spur worries about an economic slowdown.
A flattening yield curve moving toward an inverted curve traditionally has been seen as a sign of a...
But a positive and flattening yield curve has historically been constructive for the stock market.
Jim recently updated an old chart from 2007 showing the relationship between a flattening yield curve and credit spread levels.
On the similarity side, we have low volatility and a flattening yield curve; on the other side, we seem headed into an elongated hiking cycle and a much lower neutral rate than in past cycles.
But consumer staples has generally not outperformed the market amid a flattening yield curve.
«Does the flattening yield curve signal a recession?»
Among them are factors I've discussed at length elsewhere — a weaker U.S. dollar, a steadily flattening yield curve, heightened market volatility, overvalued U.S. stocks, expectations of higher inflation, trade war jitters, geopolitical risks and more.
A Study on the Flattening Yield Curve Ron Griess The Chart Store, December 13, 2005 http://www.financialsense.com/editorials/griess/2005/1213.html
A flattening yield curve has been a reliable leading indicator of past economic slowdowns, but this time around...
Gross also observed that «Economists / investment managers are aware of the potency of a flattening yield curve (shown in Chart above)... Only [former Fed Chair] Volcker, with his need to strangle inflation out of the system, persisted into negative yield curve territory for longer than a few months.»
Then there's the flattening yield curve.
This has flattened the yield curve, a sign that investors may be increasingly pessimistic about growth down the road.
A flattening yield curve is often a feature of a rising rate environment.
One of the indicators some economists have their eye on right now is what's known as the flattening yield curve — or the difference between long - term and short - term Treasury yields.
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.
The key takeaway from the report is that it will feed into the slowdown narrative that has been building with the flattening yield curve, even though there is still broad - based strength in the components that drive the overall index reading.
«The multi-year massive expansion of the Fed's balance sheet has had a recognized powerful effect on asset markets — lowering yields and flattening the yield curve.
Peter Boockvar: Chris, what was their thinking in their models with operation twist to say okay, in their models, let's flatten yield curve and that will be good for growth.
He also said that the BOJ's «yield curve policy» is aimed at boosting inflation expectations and not flattening the yield curve.
A flattening yield curve, in which the gap between short - term and long - term rates is decreasing, can be a sign that the economy is slowing down — or that policymakers are trying to put the brakes on growth.
A flattening yield curve moving toward an inverted curve traditionally has been seen as a sign of a...
On the similarity side, we have low volatility and a flattening yield curve; on the other side, we seem headed into an elongated hiking cycle and a much lower neutral rate than in past cycles.
During earnings season, investors worried about the impact of a flattening yield curve on small cap banks, which make up roughly 25 percent of the Russell 2000, according to Bloomberg data.
A flattening yield curve traditionally implies bond investors have lost short - term confidence in the economy.
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.
A lot of stock market investors have been focusing on the flattening yield curve recently.
A flattening yield curve isn't bearish for the S&P 500.
They think that the bond market leads the U.S. stock market, and that a flattening yield curve is bearish for stocks.
Do they really want to flatten the yield curve when the long end is this low already?
A flattening yield curve has been a reliable leading indicator of past economic slowdowns, but this time around may be different.
Some analysts argue that a flattening yield curve may be pointing to future economic softness and might persuade the Fed to stop raising the funds rate.
The flattening yield curve today, however, shouldn't necessarily be interpreted as a sign that a U.S. recession is ahead.
That last expectation raises one last point: a flattening yield curve is not necessarily a precursor to a recession, and there is nothing imminently pointing to one at the moment.
But a positive and flattening yield curve has historically been constructive for the stock market.
Not only were short - term interest rates lowered to either zero or close to zero, but quantitative easing was also adopted in places such as the U.S., the U.K., the eurozone, and Japan to flatten the yield curve and keep long - term interest rates low.
That will slow down the economy more effectively than flattening the yield curve, and it is not as likely to lead to a crisis.
It also demonstrates the impact that a flattening yield curve can have on a bank's net interest income.
Some investors are concerned that the flattening yield curve may turn into an inverted one.
This has created «bubble - like» conditions in the high yield markets and has flattened yield curves.
However, Philip Wee, currency strategist at DBS Group Research, opined that the flattening yield curve is an outcome of a rise in short - term yields, rather than a fall in long - term bond yields.
A flattening yield curve generally signals an impending recession.
Two - year yields rose by twenty basis points, flattening the yield curve further.

Not exact matches

He gives the first two points — which together represent a flattening of the Treasury yield curve — the most attention.
The flattening of the yield curve could be exacerbated by Chinese sales of 5 - year Treasury notes.
«If you go back to 1999 and 2007, the yield curve was flattening for a year while the stock market was going straight to the moon, and that's exactly what we're having now,» said Maley.
In such an environment, yield curves would likely flatten.
Treasury yields retrace their climb on Monday after speakers from the Federal Reserve appear to open the door to a steeper rate hike trajectory, a move that would flatten the so - called yield curve.
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