Sentences with phrase «parts of the yield curve»

If you hold a broadly diversified bond portfolio, you'll probably have exposure to all parts of the yield curve.

The lesson here is that the different parts of the yield curve do not move in lockstep, and various lending markets can behave differently over any given period.

Generally, a bank looks to borrow, or pay short - term rates to depositors, and lend at the longer - term part of the yield curve.

This is also printing money * but it is used to buy debt instruments at different parts of the yield curve, of different maturities.

This includes hedging techniques, such as using futures, options and swap spreads to speculate on rising (or falling) rates along certain parts of the yield curve, or on specific bond classes or credit ratings.

Not exact matches

In part, the bond yield curve — the difference between short - term and long - term interest rates — is an indicator of future economic growth expectations.

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

Hence, a flat yield curve can be seen as a yardstick of ineffective policy normalization focusing on the «wrong part of the term structure.»

One factor supporting the Australian dollar over the past couple of years has been that interest rates right across the yield curve in Australia, and perceived returns on other assets, have been higher than those in a number of other countries, particularly those which experienced a recession and a collapse of share prices in the early part of this decade.

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.

Or does the steepening yield curve mean investors are worried about the deterioration in the U.S. fiscal outlook, or the potential for a collapse in the U.S. dollar as the Fed floods the world with newly minted currency as part of its quantitative easing program.

This is a more logical way to think of the equity premium by decomposing it into three more understandable parts: yield curve slope, credit spread, and economic earnings.

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

Regarding the inverted yield curve, the falling rates environment sounds logical, but it doesn't explain the early part of this decade when the yield on the ten - year went from over 6 % down to under 4 %.

In the intermediate part of the curve, seven year non-callable municipal bonds tracked in the S&P AMT - Free Municipal Series 2021 Index have outpaced the equity market by returning 4.41 % with yields dropping by 33bps this year.

Depending on the shape of the prevailing SGS yield curve, there may be certain occasions where the reference SGS yields do not allow a particular Savings Bond issue to have a monotonically increasing step - up interest feature (i.e. the implied coupon rates based on the reference SGS yields may decrease over part or all of the issue's tenor).

That said, my recent 2 - part series on the shape of the yield curve suggested that the curve shape was the sort where we often get negative surprises.

That's part of what I would tell you to watch — if the yield curve flattens quickly, the FOMC will not do so much, most likely.

Of course, part of the reason the yield curve is low in the first place is because markets are weighing recession risk, perhaps using historical probabilitieOf course, part of the reason the yield curve is low in the first place is because markets are weighing recession risk, perhaps using historical probabilitieof the reason the yield curve is low in the first place is because markets are weighing recession risk, perhaps using historical probabilities.

Other parts of the gold story include indicators of economic confidence and financial - market liquidity, such as credit spreads and the yield curve.