In fact, an inverted Treasury bond yield curve
, as in 2000 and 2007, could well be a prelude to a recession or at least stagflation in 2019.
Regional Responses: The shape of the bond yield curve
and regulatory factors determine how insurers respond to quantitative easing in their investment strategies and asset allocation choices.
We expect the government bond yield curve
to steepen gradually from its current inverted shape.
My focus is on technology shares that benefit from capex spending, the mobile/tablet revolution and money center bank shares that benefit from a steeper US Treasury bond yield curve
, rising mergers and acquisition volumes, a US housing recovery, strong consumer spending due to wage growth and a fall in gasoline prices and acceleration in commercial loans.
Bond yield curve
steepened in the above 10-year maturity segment, while it remained flat in the below 10 years maturity segment.
In S&P's view, enlarged government debt has fostered the development of domestic capital markets and built up a domestic sovereign bond yield curve
Greek stocks fell sharply and the bond yield curve
inverted further, meaning longer term debt returned less than shorter term, a sign of investor fear about Athens' ability to pay.
Prior to MAP-21, pension liabilities were determined using three different interest rates, or segment rates, derived from the short-, medium- and long-term portions of the corporate bond yield curve
averaged over a 24-month period.
8, the 30-year CD/agency bond yield curve
was yielding about 3.
Arguably it is the steepness of the bond yield curve
, rather than the absolute level of yields, that is a better indicator of the state of the economic cycle.
The former is partly to do with the snapshot approach used in the applicable financial reporting standards but QE has produced some odd effects on the corporate bond yield curve
which have only accentuated the problem.
A steepening Treasury bond yield curve
gave fixed rate annuities a continued advantage over bank certificates of deposit, money market funds and Treasuries.