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Parallel Shift in the Yield Curve
(redirected from Parallel shift)

   Also found in: Wikipedia 0.01 sec.
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.


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Elsewhere we seem to be seeing a parallel shift in mood, away from Blairite impatience with government's capacity to stabilise, check and instil order.
We show that under general conditions a parallel shift in the upper bounds implies the global validity of the LeChatelier principle with respect to optimal choices.
A positive parallel shift in the yield curve of 5 percentage points also weakens considerably the solvency margin in life insurance companies.
 
 
 
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