Saturday, August 27, 2005

Yield Curve Approaching Inversion

In case if you haven't noticed it, the yield curve is about to invert between the 2 to 5 year range. The 2 year bond is currently yielding 4.05%, while the 5 year bond is yielding 4.08%. We could get the inversion in the next few trading days. The 10 year, at 4.17% is not too far away. The 30 year bond yield has been shrinking lately and it stood at 4.36% at the end of the trading day today.

Conundrum. Indeed.

Yield Curve
Source: www.bloomberg.com

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