Short end of the yield curve

Short end of the yield curve

Refers to yields that are generally less than one year.
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In fact, the short end of the yield curve is rising faster than the long end and the spread between the 5-year and 30-year yields tightened to 109 bps from 220 bps at the start of the year, indicating that the yield curve is plateauing.
Year-to-date, for example, Treasury yields on the short end of the yield curve (two and three years specifically) have actually increased, whereas one-year Treasury yields for the first quarter have declined 35 basis points.
This too may be an indication that the guidance has had some effect in preventing unwarranted movements at the short end of the yield curve.
Although synchronised movements in bond rates is unsurprising given the high degree of substitutability between relatively safe sovereign bonds, synchronisation at the short end of the yield curve is not warranted if cyclical positions differ," he said.
The ECB's intervention at the short end of the yield curve, in the money markets, is massive and potent.
Portugal is so far managing to fund itself at the short end of the yield curve, but the cost of borrowing is now close to or at record highs and is becoming increasingly punitive.
For the most part of auctions held during last months demand was concentrating near the short end of the yield curve that created quite tough redemptions schedule in the short run.
According to Neil Cullen, managing director and national sales manager of PWF, "The benefit of Fannie Mae's DUS DMBS product is that it enables our best customers to benefit from the very low interest rates on the short end of the yield curve.
They fled toward more price-certain investments at the short end of the yield curve.
With an upward trend in interest rates taking hold, particularly at the short end of the yield curve, borrowers are clamoring to lock in historically low, long-term, fixed interest rates.
The recent announcement of monetary policy by the Federal Reserve may increase interest rates to small businesses as most small businesses borrow on a prime rate basis and off the short end of the yield curve.
short-term interest rates at extraordinary lows (at one point the Fed funds rate was set at 1 percent), financial institutions would borrow on the short end of the yield curve and buy the long end, guaranteeing a nice profit even before taking any risk.