March 20, 2003

Yield Curve

What is going on with interest rates?


The yield curve is normally upward sloping. We have two explanations for this phenomenon. Both are relevant to understanding the slope of the yield curve. In fact, the inflation fears that generate the risk also can generate expectations of higher interest rates.


The forward rate is the futiure short term rate that can be locked in by borrowing in the short-term market and loaning in the long-term market.


We took a look at some yield curves:

Smart Money

Stock Charts



U.S. Treasury

Posted by bparke at March 20, 2003 09:28 PM