Sentences with phrase «yield curve situations»

Not exact matches

So right now the situation that we're seeing is a flatter curve, yeah but the Fed funds rate is in the 160s, [10 - year yield] in the 270s.

This situation is referred to as a «normal» yield curve.

Yield curves change shape as the economic situation evolves, based on developments in macroeconomic factors like interest rates, inflation, industrial output, GDP figures and balance of trade.

A better evaluation of the situation measures each year's «total return» - the combination of the coupon's yield, the gain from rolling down the yield curve plus the capital loss.

The yield curve shown below highlights this situation.

Or, borrow short and lend long when the yield curve is steep, hoping the situation will correct with the long yield coming down, rather than a 1994 scenario, where short rates outrace long rates higher.