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.

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.
References in periodicals archive ?
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.
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.
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.
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.
5155 ***, ([dagger]) Parallel shift by blacks *** Overall different response *** Below poverty ([dagger]) -0.
The new British documents show a parallel shift in view in London.
While the organization and financing of mental-health care has been revolutionized, no parallel shift in administration and policy-making has occurred.
Along with this newer thinking came a parallel shift in laboratory services from in-house hospital traditional laboratories to off-site and reference labs.
If parallel shift of the heating curve is planned, new system will always reduce the volume flow rate for the design point by 25%, based on the volume flow rate the system designer has calculated for a conventional mixing or injection-type system.
income) will result in a rotation of the demand curve and not a parallel shift, while 2) if the demand relationship is assumed to be linear in its arguments, a change in a demand-shifting variable will result in a parallel shift in the demand curve.
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.