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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Since banks have surplus funds at shorter end of the maturity ladder, an increase in interest rate is expected to have a negative impact on profitability due to faster repricing of liabilities compared to assets in case of a parallel shift adopted by the banks.
That saw yields pull back from earlier highs, though still 0.7-1.1 basis points higher on the day in a fairly parallel shift. The 2s-30s spread is little changed at +54.4 bp on net.
Management estimates that an instantaneous +100 bps parallel shift in the interest rate yield curve would increase NII by $2.8 billion, or around 6.3% of 2017 NII, over the next 12 months.
Meanwhile, a parallel shift happened on the right, in Israel, Europe and the U.S.
During the past decade or so many tea consuming markets have seen their traditional pattern shift towards both more novelty and higher quality teas, but also from mainstream teas to fine coffees, with a parallel shift from mainstream coffees to fine teas.
In this exploratory randomized controlled crossover trial, we aim to investigate real-time ultrasound/MRI fusion versus ultrasound guidance applied on the Suprasacral Parallel Shift (SSPS) technique for lumbosacral plexus blockade [22].
The yield curve took a roughly parallel shift downward since last month, with the three-month (constant maturity) Treasury bill rate dropping down to 0.03 percent (for the week ending April 25) from March's 0.06 percent and just below February's 0.04 percent.
As market conditions change (e.g., 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.
It must be noted that the computation of the economic surplus of changes in technology level due to research benefits as a parallel shift of the supply function is provided by Alston.
Next, the emphasis on MSO within the BCT and parallel shift of interrogations to Military Intelligence (MI) brigades (BDE) has created a functional rift within HUMINT, creating Soldiers that are not proficient at both aspects of their jobs.
In the period of 1993-1994 the Fed lowered the Fed Funds rate to 3%, and as the Fed unwound this, there was a parallel shift up in the yield curve, causing long dated maturities to suffer the most.
The new British documents show a parallel shift in view in London.
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