Discover how the spot rate Treasury curve—a yield curve from Treasury spot rates—serves as a critical tool for bond pricing and market predictions.
Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...
TYA is a rather simple approach to investing in the intermediate part of the yield curve sized in an amount that gives it longer-term Treasury duration. The intermediate part (or belly) of the yield ...
Many investors oversimplify the investment process with respect to duration by thinking about the concept on a single spectrum. They also overly focus on today's yield rather than considering ...
The yield curve is a graphical representation that plots the interest rates of bonds with equal credit quality but varying maturity dates. A normal yield curve slopes upward, indicating higher ...
Roll yield is a term used to describe the increase in price that an investor can receive as a bond's maturity ages. When a bond gets closer to its final maturity, its yield typically decreases, ...
North American yield curves are experiencing the steepest inversion of the last 3 decades, while European yield curves have flattened significantly in 2022. In the world of fixed income investing, ...
There are a lot of recession predictors people watch: Some track imports, some track wholesale prices, some even track light truck sales and Statue of Liberty visits. But one of the most watched ...
In my 50-plus years of running money, I’ve noticed that the biggest market moves come from factors that have gone unnoticed – and right now, there’s a doozy lurking under the table. Amid all the ...
The “experts” talk about how the U.S. Treasury Curve is currently “inverted.” What does that mean, and should it matter to lenders? The fact is, the yield curve (a graphical representation of yields, ...
Yield curves plot bond yields against their maturities, helping predict economic trends. Inverted yield curves suggest potential economic downturns, impacting investment choices. Understanding yield ...
An inverted yield curve indicates short-term rates exceed long-term, suggesting economic caution. Historically, consistent negative spreads on this curve have preceded recessions. Investors might ...