Sentences with phrase «of yield curve with»

Flooding the short end of the yield curve with liquidity has overwhelmed those seeking permanent liquidity cheaply, by offering large amounts of temporary liquidity cheaply, and saying that the program could become a regular part of the Fed's policy tools.

The Fed is flooding the short end of the yield curve with liquidity for now, until inflaton pressures become intolerable.

FRA: Given the potential in Europe for being the epicentre of perhaps the next financial crisis as Peter Boockvar mentions, could we see international capital flows come from Europe and elsewhere to the U.S. markets especially as you mentioned there could be pressure on the long end of the yield curve with the movement into equities.

And I think you had that back then, and that was a period where you sustained that kind of yield curve with a healthy economy.

Not exact matches

«With our forecast projecting output growth to slow below potential in 2020, the inversion of the yield curve would be a meaningful signal regarding the specter of a looming recession.»

Bonds due in 2018 and won by BofA were «aggressively» priced with a 1.64 percent yield that narrowed Illinois» spread over Municipal Market Data's benchmark triple - A yield curve to 70 basis points from 100 basis points ahead of the sale, Greg Saulnier, a MMD analyst, said.

Smaller - than - expected announcements of the German current account and trade balance were associated with rising yields at both ends of the yield curve.

One of the best economic indicators, the yield curve or the spread between short and long - term bonds remains in positive territory, with the long - term much higher than the short.

Earnings momentum coupled with deregulation, yield curve steepening, and the potential support of the value factor.

The RBA uses the operating technique which has come universal in countries with deregulated financial markets: the Bank can influence liquidity in the payments clearing system, and is allows us to shift interest rates at the very short end of the yield curve.

And QE is surely already hitting diminishing returns with the yield curve flattening and markets functioning without the illiquidity premia of the early recovery period.

For example, it is often useful to view the short - end of the yield curve as being primarily influenced by growth, with the long - end mostly reflecting inflation expectations.

The shape of the yield curve continues to imply a further «parallel shift» upward, with yields rising at all maturities.

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.»

Negative Feedback Loops «The steepness of the yield curve holds a long - standing correlation with currency weakness,» a report by Bank of America Merrill Lynch global research says.

While shortening duration can help mitigate interest rate risk, another approach to consider is one that balances exposure to the very front end of the curve with exposure to intermediate maturities for additional yield potential and lower volatility, given that rates are likely to rise slowly and stay historically low for the foreseeable future.

With the exception of the very front end of the yield curve, Canadian government bond yields declined, as did spreads on investment grade corporate bonds.

As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.

The recent flattening of the yield curves in the U.S. has precipitated discussion that the FED is moving too fast in raising rates with the market action predicting an impending recession.

The shape of the yield curve changes in accordance with the state of the economy.

Although downward sloping yield curves have dominated the landscape in Australia in the deregulated era, positive sloped yield curves have been the norm in a number of other countries, particularly those with relatively low inflation (see table).

Prior to each of the last seven recessions (shaded bars on chart), the yield curve was inverted with short - term rates higher than longer - term rates.

The fall in bond yields over the past year, combined with an unchanged target cash rate, has seen a flattening of the yield curve.

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.

To some degree, I think one can almost look at Poland as a structure of a yield curve that would be what the European yield curve might look like if the ECB weren't buying quite as many bonds and with emergency interest rates.

Though the US yield curve remained some way from inversion — which historically is often cited as signaling an impending recession — investors were relatively sanguine about the significance of its flattening, with many arguing that low long - term yields were more reflective of central - bank policies and the weak inflationary environment than dimmer economic prospects.

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.

The shape of the yield curve has changed markedly since early February, with the curve now inverted.

As a consequence of these concerns the Bank of Japan introduced in September 2016 QQE with yield curve control (view post here).

Unfortunately market rates — especially at the short end of the yield curve — are subject to an observer - participant feedback loop with the Fed, so the dilemma can not be entirely avoided.

With a normal yield curve, bond buyers essentially demand a higher rate of interest in order to lend money for 30 years than they will to loan money for 30 days since they will be locking up their money for a longer period of time.

The disappearance of low - risk yield opportunities in fixed income markets has subsequently forced investors out the risk curve and into traditionally defensive equity sectors with reasonable payouts.

As the Fed's stimulus program appears to have «peaked» Citi warned investors yesterday to be cautious with the Equity markets; and recent price action across the Treasury curve suggests lower yields can be seen and US 10 year yields are in danger of retesting the 2.40 % area.

As the yield curve has flattened considerably, a lack of yield compensation on longer dated bonds warrants caution for investors with very interest rate - sensitive portfolios.

In fact, one observational system of which I am aware (i.e., the TAP System for Teacher and Student Advancement) is marketing its proprietary system, using as a primary selling point figures illustrating (with text explaining) how clients who use their system will improve their prior «Widget Effect» results (i.e., yielding such normal curves; see Figure below, as per Jerald & Van Hook, 2011, p. 1).

But by overweighting highly cyclical companies with the global yield curve already so flat, investors must believe that the yield curve has lost all of its ability to signal slower growth ahead.

Here we can see what happened with the steepness of the yield curve and the Fed Funds rate during the last rate hikes in 2004 - 2006:

With the note against bond spread (NOB), the position a futures trader will take depends upon their perception of the yield curve.

When the yield curve looks like this, with short - term rates about the same as long - term rates, it's generally a signal that there's a lot of uncertainty about the outlook for the economy, interest rates, and inflation.

I do know that the FOMC has only 1 % of tightening to play with before the yield curve gets flat.

That is probably a bad assumption in this case, after all, the proportion of Treasury issues out past 20 years is a small minority of Treasury issuance, and even with existing demand, the yield curve is quite steep.

What this means is that there are intrinsic levels of risk affecting the yields on high quality corporate debt, lessening the positive slope of their spread curves, or with agencies inverting the spread curves.

The yield curve is basically just a line that plots the yield of US treasury bonds (TLT) with different maturity dates.

Historically, the combination of an inverted yield curve and a P / E ratio over 15 has been associated with negative market returns, on average.

But rather than go back to the same well one more time with a QE3, the Fed decided in September 2011 to implement Operation Twist, which is an effort to change the shape of the Treasury yield curve by purchasing longer term debt and selling short term paper.

Finally, liquidity seems to be slipping — too many markets with abnormalities in the short end of the yield curve.

To measure the world's yield curve, we'll use the countries of the G7, excluding Japan, which has been out of step with other large economies for more than a decade.

But the underlying economic expectations that steeper yield curves imply is of global reflation — higher growth and with it higher inflation.

The «usual shape» of the yield curve is positive; that is, with short term rates lower than long term.

Other yield curves can also be developed based upon a comparison of credit investments with similar risk characteristics.