Sentences with phrase «slope of the yield curve»

Looking at slope of the yield curves 10 - years to 2 - years, the Treasury curve has widened 20 bp and the swap curve 23 bp.

As maturing proceeds are reinvested at the end of the ladder, the yield of the portfolio is greater than what would be expected by the average maturity of the bond portfolio because of the positive slope of the yield curve.

While the slope of the yield curve today may point to more modest returns in future years, we believe the bull market still has room to run.

Reasons for the relationship between the slope of the yield curve and the economy often vary, but the original assertion was that longer - term rates are averages of expected future short - term rates, which would be lower if future growth (and the demand for credit) was lower.

Subsequent research has shown that the predictive power of the slope of the yield curve varies over different periods; that is, it is (like many relationships) period - specific.

The difference between long - term and short - term interest rates is known as the «slope of the yield curve», or «the term spread.»

One of the first pieces I read on the slope of the yield curve, which continues to influence my thinking to this day, was written in the 1980s by economists Arthur Laffer and Victor Canto.

Much of the literature about the slope of the yield curve being a reliable predictor of future economic activity originated in the 1980s, but reference to it goes back to economist Rueben Kessel's work in the mid-1960s (Federal Reserve Bank of New York).

I thought that it was supply and demand that determines the slope of the yield curve.

Nonetheless, at around 65 basis points, the slope of the yield curve remains below its medium - term average (Graph 67).

In any case, investors should keep in mind that the stock market's reaction to Fed cuts has historically been dependent on other conditions such as valuations, economic expectations and the slope of the yield curve.

In cases since 1960 where the slope of the yield curve was inverted, 10 - year bond yields actually rose following the Fed's first rate cut - an average of 43 basis points over the next 12 months and 15 basis points over the next 18 months.

The slope of the yield curve in the US is steep by historical standards, with the spread between the Fed funds rate and 10 - year bond yields at over 300 basis points, around the highest it has been since the early 1990s (Graph 15).

Another indicator of financial conditions is the slope of the yield curve, as measured by the spread between the yield on 10 - year bonds and the target cash rate.

While the combination of rapid credit growth and below - average interest rates suggests that financial conditions remain expansionary, the slope of the yield curve, as measured by the spread between the yield on 10 - year bonds and the cash rate, suggests a somewhat different picture.

Given what I know about the Fed's reaction function, I believe pre-conditions favor Fed tightening irrespective of the slope of the yield curve.

Bond investors refer to this as a «flattening»; the slope of the yield curve is getting flatter as the short end rises more than the long end.

It is my contention that the slope of the yield curve changes relatively consistently through loosening and tightening cycles.

Watch the slope of the yield curve.

Beats me; the slope of the yield curve today is adequate to allow banks to make money; if the Fed waits at these levels, the economy should recover over the next two years.

Another signaling mechanism that breaks down when policy rates are set low for an extended period of time is slope of the yield curve.

During those times the slope of the yield curve tells you a lot, and credit spreads tell you a lot as well.

No doubt, the slope of the yield curve, as measured by the spread between two - and 10 - year government bonds, has been flattening since 2014 in both Canada and the United States, and the trend has recently intensified: as we headed into December, the curve sat at its flattest level since the Great Recession.

What does offer more contrast in average returns is when you combine the slope of the yield curve and the level of market valuation.

The slope of the yield curve has received a lot of attention lately.

As an indicator of economic weakness, the slope of the yield curve began to gain in notoriety about 15 years ago after two Federal Reserve economists pointed out the tendency for long - term bond yields to fall below shorter - term yields prior to recessions as investors clamored for the safety of US Treasury notes.

The graph below divides the returns that followed periods when the slope of the yield curve has been steep into two groups: whether valuations have been unfavorable (a cyclically adjusted P / E ratio of greater than 21, its current level) or favorable (a CAPE of less than 14).

Interpreting the slope of the yield curve is a very useful tool in making top - down investment decisions.

If you invest in real estate, you can also use the slope of the yield curve.

You could even use the slope of the yield curve to help you decide if it's time to purchase that new car.

The slope of the yield curve tells us how the bond market expects short - term interest rates (as a reflection of economic activity and future levels of inflation) to move in the future.

This is the slope of the yield curve, and it's the world's largest barometer of the expectations of US economic growth (Pop Up: The Yield Curve: a multi-talented indicator).

The slope of the yield curve is also changing noticeably.

However, the quality index does not have any significant tilt towards oil prices, inflation, housing starts or the slope of the yield curve.

In cases since 1960 where the slope of the yield curve was inverted, 10 - year bond yields actually rose following the Fed's first rate cut - an average of 43 basis points over the next 12 months and 15 basis points over the next 18 months.

While the slope of the yield curve today may point to more modest returns in future years, we believe the bull market still has room to run.

In any case, investors should keep in mind that the stock market's reaction to Fed cuts has historically been dependent on other conditions such as valuations, economic expectations and the slope of the yield curve.

Two - Year Ten - Year The slope of the yield curve was unchanged as two - and ten - year yields rose by the same amount.

In addition to interest rate risk, the value of the options embedded in callables is sensitive to changes in the slope of the yield curve.2 The value of the options is a function of forward rates, 3 which are dependent on the spot4 level of rates and spot yield spreads.5