Posts

Resist the Flat Yield Curve Hype

Last Week: Interest rates were mixed and global equities rose modestly as geo-political tensions and solid economic data continued their tug-of-war on markets. The yield on the US 10-year Treasury note rose 3 basis points to 2.86% while 1-month LIBOR fell 1 basis point to 2.069%. Oil fell another $2.50 to $68, as the US […]

Derivative Logic Logo

Beware the Flat Yield Curve

While the Fed’s 0.25% rate hike was totally anticipated, market’s and the Fed’s expectations for where interest rates are headed are miles apart. This difference of opinion is expressed in flat Treasury yield curves, where the Fed, by way of its pronouncements of future hikes, pushes short-term rates higher and markets, via their lingering doubts […]