While the recent developments (steep fall in yield spreads
, higher participation in longer tenor bills) in the debt market point to the end of tightening cycle, we think the inflation readings in the next few months remain critical in determining the monetary policy outlook.
However, he also noted that high yield spreads
have narrowed quickly since the beginning of the year, which he believes should provide a steadier platform for issuance in 2019.
between five- and 30-year Treasuries narrowed last week to their lowest level since August 2007.
Inter-Bank Market Rates: In the final Asian trade, It was hard to find a pulse in the currency market as dealers bedded down for the Christmas holidays, though the mood remains bullish for more dollar gains in the New Year as yield spreads
widen in its favour.
Summary: Shrinking liquidity and widening yield spreads
could dampen demand
Second, other researchers have postulated that the underlying determinants of the yield spread
today are materially different from the determinants that generated yield spreads
during prior decades.
We examine the impact of firms' board ties on bond yield spreads
. Prior literature associates board connectedness with improved access to resources due to visibility and reputation arising from greater board capital.
The official integration of Eurozone financial markets was mostly a matter of membership in 1999 and resulted in sovereign yields converging across Eurozone countries, but yield spreads
quickly diverged during the financial crisis.
With the situation worsening by the hour though and the markets having clearly demonstrated a looming doomsday, with perilously high bond yield spreads
, prompt action must be taken.
Greek bank shares jumped 7% at Monday's open as investors welcomed the improved bailout terms for Greece agreed at the euro zone summit on Friday and yield spreads