Questions tagged [yield-curve]
21 questions
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Why invest in long term government bonds when the yield curve is inverting?
The New York Times has noted that the US is heading toward an inverted yield curve, which is one of the precursors for a recession. The yield curve is said to be inverted when long term government bonds pay less interest than short term ones. I'm…
JoJo
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How Is There A Yield Curve For Treasuries?
Why would anyone buy a 1 yr T-Bill with a return of 1.25% when you get double that on a 30-year T-Bond? Where is the risk and/or liquidity premium coming from?
There's a highly liquid, secondary market where you can exit a position at any time,…
EricP
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Which yield curve is inverting?
All over the news I read that the yield curve is inverting.
I thought they were talking about the US Treasury Bond yield curve.
This seems to be the case when I read this article.
However there are still some things I don't grasp.
1) How does the…
WTeach
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4
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Why does the 20 year Treasury bond have a higher yield than the 30 year Treasury bond?
I noticed, as expected that the yield on the 30 year Treasury bond is higher than the yield on the 10 year Treasury bond. I also noticed that the 20 year Treasury bond has a higher yield than the 30 year Treasury bond. I find this fact a bit…
Bob
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Unusually inverted yield curve for time deposits
I found out the following time deposit rates of a bank:
I understand the meanings behind inverted yield curves. However, the rates seem very unusual to me: The 18-month rate is far lower than the 15-month rate, which causes the amount of interest…
tonychow1997
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US treasuries yield on economy news
When looking at say Bloomberg or CNBC news on television, one often sees different yields for US treasuries pop up. For example:
What does this represent? How are these numbers determined?
It can't be their yield from the government since they are…
user123124
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Trying to understand the U.S. yield curve and global inflation
With the COVID crisis the FED has lower interest rates a lot:
Now, inspecting the US yield curve:
It seems to be that this is a normal curve that doesn't flatten too much at the end. Is this correct?
According to this article:
A steep yield curve…
Martel
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Clarification on the 6-Month Yield Point on the US Treasury Yield Curve
Can the 6-month yield point on the US Treasury Yield Curve represent yields from securities originally issued with longer maturities (e.g., 1 year) but now have only 6 months left until maturity?
..Or does it exclusively reflect yields from…
StatsScared
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How is the yield of this particular bond calculated?
I am looking at this particular bond of coinbase company via Interactive Brokers website.
Coinbase Bond ISIN : USU19328AA89
The rate of the bond is 3.4 so at the ask price of the bond at 62 the yield should have been (3.4/62)*100% = 5.66%. How is…
Saugat Awale
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Lag between Fed Announcement and Actual Implementation
After the Fed announces its new target range for Fed Funds, is there a set number of days before actual implementation?
If not, is there a convention, like within a week?
I'm wondering, because the Fed announced the new range of 3.00-3.25% on…
kfmfe04
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What is the spread between maturities called?
Credit spreads typically compare two bonds of the same maturity. For example, a 10-year US Treasury yielding 3% might be compared to a Corporate Bond yielding 4.5% and we'd say the spread was 1.5%.
However, when people talk about inverted yield…
Ben Parizek
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What does it mean that UST10 have risen from 1.2 to greater than 1.7 over the last half year?
I'm a newbe in bonds market, but I'd like to ask what does it indicate that UST10 have risen from 1.2 to greater than 1.7 over the last half year?
Does it mean that the bond market foresees high inflation in the next decade or what?
Daniel
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Confusion about bonds, and the relationship between floating rates, prices, credit risk, and collateral
I'm trying to wrap my head around bonds.
There are many types of bonds, but to put it simply, it can either be floating rate or fixed rate, and it can also have collateral to account for the credit risk (like ABS bonds).
Now, it seems to me that ALL…
Kakeo
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Locking in rates during yield curve inversion
While reading multiple articles about yield curve inversion, a common theme is that investors seeing an economic slowdown in the future which generally means lower interest rates so they want to lock in today's rate.
I'm confused as to why they…
Skrrrrrtttt
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Is there a widely accepted approach to decomposing government bond yields across different maturities, and if so, what are the main components?
I'm wondering if there is a standard framework or methodology to decompose government bond yields across various maturities (e.g., short-, medium-, and long-term). Specifically, I’m interested in understanding what the main components are in terms…
StatsScared
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