If you haven't been paying attention to the persistent flattening of the U.S. yield curve, you're way behind it.
Peter Cecchini, chief market strategist at Cantor Fitzgerald, calls it "the most important thing to have a clear idea about now." Billionaire fund manager Bill Gross says we're rapidly approaching a point at which the trend will induce an economic slowdown. Others claim it's only natural, with the Federal Reserve raising short-term interest rates in the face of stubbornly low inflation.
To put it simply, the Treasury yield curve measures the spread between short- and long-term debt issued by the U.S. government. It's the extra compensation that investors demand to lock away their money for an extended period.
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.