Sentences with phrase «inverted yield curves»

Inverted yield curves are exceptions.

Inverted yield curves — not flat ones — are typically sinister for economic activity and risk assets.

Poor economic performance following inverted yield curves is one part of the explanation for these results.

Inverted yield curves sound so much more...

Banks commonly trade at under their book value in environments of low interest rates, flat or inverted yield curves, and high amounts of regulation.

Inverted yield curves sound so much more complicated than they really are, and while news outlets are quick to throw this term around, they seldom explain what the term means, and why they matter to investors.

This is why we care about inverted yield curves.

Still, inverted yield curves are like an earthquake in the ocean — the tsunami may not happen right away, but you'll likely feel it coming.

Our April Market Perspectives Webinar included a discussion of the following research topics: When Cash Is King Inverted Yield Curves and Recessions The Yield Curve and Stock Market Returns What is the Relationship Between Crude Oil and Energy Stocks?

It is well know that inverted yield curves have also been a fairly reliable indicator of recessions.

Poor economic performance following inverted yield curves is one part of the explanation for these results.

Maybe - the Fed raises rates in response to increased CPI readings, perhaps enough to invert the yield curve.

In other words, it would have to meaningfully invert the yield curve in order to achieve a helicopter drop.

Silverstein: Will we end up with an inverted yield curve, and is that something that you're worried about?

In addition, everyone is now fretting about an «inverted yield curve,» which is the phenomenon when long - term yields, such as the 10 - year yield, fall below short - term yields, such as the three - month yield or the two - year yield.The last time this happened was before the Financial Crisis.

And recessions are often presaged by certain signals: rising jobless claims; falling home sales; an inverted yield curve; wage pressures that impact corporate margins; exogenous shocks, including oil spikes; or destabilizing valuations in key asset classes.

They have about 125 bps of wriggle room at present before they invert the yield curve.

I've never understood why Central Banks willingly invert yield curves, but they do and it almost always leads to a bad outcome.

Inverted yield curve?

Achievement of these goals was considered by the HRC as very challenging, even aggressive, given the expected modest economic growth for 2007 for the financial services industry, the impact and duration of the on - going flat / inverted yield curve (meaning short - term interest rates that are virtually equal to or exceed long - term interest rates, thus lowering profit margins for financial services companies that borrow cash at short - term rates and lend at long - term rates), potentially higher credit losses, fewer available high - quality, high - yielding loans and investment opportunities, and a consumer shift from non-interest to interest - bearing deposits.

In contrast, an inverted yield curve (when short - term yields exceed long - term yields) has been a headwind for stocks.

Markets are worried about an inverted yield curve, and is Apple potentially discontinuing the iPhone X?

The fund can also take a position in 0 - 3 month T - bills should the 5 - year note become too volatile, too correlated with equity, or too low - yielding (such as in a flat or inverted yield curve).

A reader asked about prior studies on a flattening or inverting yield curve, wondering «what have they concluded?»

The past seven U.S. recessions were directly preceded by an inverted yield curve — that is, when short - term yields rose above long - term yields.

The inverted yield curve indicator worked very well the last two recessions; but now, with the Federal Reserve holding interest rates at the zero bound, it is simply impossible to get a negative yield curve.

There was only one that was accurate all the time, and that was an inverted yield curve of a particular length and depth.

On the other hand, when investors demand more return in the short term than in the long run, that's known as an inverted yield curve.

An inverted yield curve is an interest rate environment in which long - term debt instruments have a lower yield than short - term debt instruments of the same credit quality.

Recessions have usually followed an inverted yield curve, when short - term interest rates are higher than long - term rates.

Understand how the relationship between short - and long - term interest rates contributes to an inverted yield curve — a noteworthy economic event.

With lower demand for shorter - term securities, their yields actually go up, giving rise to an inverted yield curve when yields on longer - term securities have come down at the same time.

An inverted yield curve is sometimes referred to as a negative yield curve.

This is to both avoid over stimulating the housing market (a mistake they now admit occurred during the last cycle) and to avoid the negative signal of inverting the yield curve.

In our opinion, an inverted yield curve is an indication that the Federal Reserve Board has inflationary concerns and is looking to moderate economic growth and constrain credit creation.

When long term yields fall below short term yields, it's known as an inverted yield curve.

Whether investors had priced in great earnings or fear arose that an inverted yield curve could pinch margins, no one knows, but the stocks clearly have underperformed on what was seemingly excellent news.

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.

Now there are times that the yield curve is inverted because we are predicting a slowdown in the economy but I don't think, you know, here we are into the eighth year of economic expansion, ninth maybe, and it doesn't really seem to be any particular reason that that economic expansion is going to die any time soon, so the traditional inverted yield curve «we're about to go into recession» I don't see.

If there are misfinanced (too much short - term borrowing) or over-indebted areas of the economy, there can be considerable economic failure with a flat or inverted yield curve.

My summary advice for the FOMC would be this: before you flatten / invert the yield curve, start selling all of the long MBS and Treasury bonds with average maturities longer than 10 years.

Powell was asked about inverting the yield curve at his press conference, and he hemmed and hawed over it, saying the evidence isn't clear.

That is why I said, «Just Don't Invert the Yield Curve.»

In the meantime, we have a combination of an inverted yield curve and Treasury bill yields narrowly above the rate of inflation.

If you've heard the term «inverted yield curve» floating around the financial world recently and were left scratching your head, you're not alone.

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

It will be important to monitor developments in the shape of the yield curve given an inverted yield curve has preceded all nine US recessions since 1955.

A flat or inverted yield curve, implies that long - term rates are the same or lower than short - term rates.

Those two together you a flat or inverted yield curve where short term bonds yield the same or even more than long - term bonds.

Similarly, since July, we've observed an inverted yield curve, with the 10 - year Treasury yield below the 3 - month Treasury bill yield.