Long Rate

(redirected from Long Rates)

Long Rate

References in periodicals archive ?
Asian Market Wrap: 10-year JGB yields are up 0.2 bp at 0.085%, while most other long rates in Asia declined.
This is concerning to many investors as a flatter yield curve is more restrictive on the flow of credit and the amount investors can earn through leverage (borrowing at short rates and investing the proceeds at long rates).<br />If the Fed were to hike short-term rates above long-term rates, the result would be an inversion of the yield curve.
The extreme form is when the yield curve becomes inverted, or when short rates are higher than long rates. Term spreads now are fairly low, but are not yet in negative territory.
It is expected to opt for a formula that specifies steady rates for several quarters and for as long rates are consistent with its near 2 percent inflation target.
He emphasized that emerging markets saw some relief on May 21 as risk appetite improved, USD strength eased, and US long rates did likewise.
However, long rates are finally seeing some upward pressure from signs of the Fed unwinding its balance sheet, as well as from finally higher European rates.
Pushing long rates down is not going to fix the economy and is causing pension problems that are being worryingly ignored."
The bank said, 'each of the key components [in the index] - long rates, the dollar, equity prices and credit spreads - has retraced most or all of its prior deterioration.
They lose more in principal than other bonds when long rates rise, but that may not happen for a while because inflation, a key trigger for long-term rates to rise, remains under control and because the Fed's rate hike affects only short-term fed funds rate.
Long rates rose while the short end stayed (nearly) constant, with the three-month (constant maturity) Treasury bill rate staying at the very low 0.02 percent (for the week ending October 24), just down from August's 0.03 percent.
* Charles Carlstrom, Federal Reserve Bank of Cleveland; Timothy Fuerst, University of Notre Dame; and Matthias Paustian, Federal Reserve Board, "Targeting Long Rates in a Model with Segmented Markets"
"It is reasonable to expect some volatility in long rates as Fed policy shifts." In the United States, a tighter fiscal policy should shave 2.5% from output this year, according to the IMF.

Full browser ?