Parallel shift in the yield curve

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Parallel shift in the yield curve

A shift in economic conditions in which the change in the interest rate on all maturities is the same number of basis points. In other words, if the three month T-bill increases 100 basis points (one %), then the 6-month, 1-year, 5-year, 10-year, 20-year, and 30-year rates all increase by 100 basis points as well. Related: Non-parallel shift in the yield curve.

Parallel Shift in the Yield Curve

A change in the yield curve for bonds with different maturities in which the changes in yields occur evenly. For example, given a yield curve for bonds with one-year, five-year, and 10-year maturities, a parallel shift in the yield curve occurs when the yields for all three bonds increase 10 basis points each. See also: Nonparallel Shift in the Yield Curve.
References in periodicals archive ?
As shifts in demand for core products interact with innovation and business models, the labor market will have to adapt to parallel shifts in labor demand for skills, education, and flexibility.
ISLAMABAD -- Capital Administration and Development Division (CADD) on Monday decided to move evening classes in morning shift as it is not feasible to run two parallel shifts in Islamabad Model schools and colleges.
2, with parallel shifts upward of 0, 2, and 4 percent in the yield curve.
mortality patterns, a parallel shift in yield curve), the marking-to-market (MTM) procedure could mean that the longevity swap switches status in the hedger's balance sheet between that of an asset and that of a liability.
Shifting the curves parallel is not, in itself, 'wrong' but rather creates an impression in the student's mind that may lead to later confusion, as for example, when the student thinks in terms of parallel shifts when employing a constant elasticity specification in an econometrics course.
Everywhere you go in Richmond, and elsewhere in Virginia, you hear hints of similar, parallel shifts.
Employed mothers engage in remote employment during some parallel shifts while they engage in remote mothering in other parallel shifts.
Using descriptive statistics, the study finds institutional rates of acceptance as well as the median grade-point average and Law School Admission Test score for entering classes appear to parallel shifts in the number of applications received.
Thus the price of a zero-coupon bond is more sensitive to parallel shifts in interest rates than, say, a 10% bond.
average life" test); (2) an expected weighted-average life that extends by more than four years or shortens by more than five years assuming immediate and sustained parallel shifts in the yield curve of plus or minus 300 basis points, respectively (i.
parallel shifts outward due to rising income), then the expected supply response can be estimated.
Recent enhancements include the addition of more robust handling of the initial yield curve, support for key rate and parallel shifts to the yield curve, as well as support for larger simulations.