Sentences with phrase «flattening yield»

"Flattening yield" refers to a situation in the financial market where the difference between the interest rates of short-term and long-term investments decreases. This means that the gap between the returns from short-term and long-term investments becomes smaller, making the yield curve flatter. Full definition
Do they really want to flatten the yield curve when the long end is this low already?
Those rate hikes, they said, are in and of themselves acting to flatten the yield curve.
When rates rise by flattening the yield curve, the greater change in rates at the short end will offset to some extent the advantage provided by the shorter bond's lower duration.
As such, it behooves the Fed to avoid overly flattening the yield curve.
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.
Second, large - scale asset purchases tend to lower the interest rates on the purchased assets, and on other types of debt of similar duration, which in effect flattens the yield curve, bringing longer - term interest rates down closer to short - term interest rates.
When central banks begin tightening monetary policy, this usually flattens the yield curve given they have direct control over the front end.
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.
As such, it behooves the Fed to avoid overly flattening the yield curve.
Two - year yields rose by twenty basis points, flattening the yield curve further.
More than two - thirds of respondents say the benefits of tax cuts for the U.S. economy will outweigh the drag from higher interest rates, and a similar percentage say the flattening yield curve does not signal a recession.
«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.
Investors have given some blame to the rise in credit card delinquency rates, the fall in loan demand, as well as the ever - flattening yield curve.
Specifically, Maley pointed to the flattening yield curve — where short - term and long - term rates compress — as reason for concern.
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...
There's more to a flattening yield curve than traditional omens of a recession, says Informa Financial Intelligence's Chief Macro Strategist David Ader.
But a positive and flattening yield curve has historically been constructive for the stock market.
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?»
Further, I happened to come across this commentary — A Study on the Flattening Yield Curve — of post-1970 inversions.
A flattening yield curve has been a reliable leading indicator of past economic slowdowns, but this time around...
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.
Then there's the flattening yield curve.
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.
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.
A flattening yield curve highlights Federal Reserve rate hikes» inability to tighten financial conditions, as low long - term interest rates continued to induce institutional investors to «reach for yield» by moving up the risk ladder
A flattened yield curve means that short - term bonds pay almost as much interest as long - term ones.
«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.
We acknowledge that some indicators of recession (flattening yield curve, tightening lending standards) have risen recently.
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.
Weak economies have flattening yield curves.
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.
a b c d e f g h i j k l m n o p q r s t u v w x y z