vnjones_wk2_d1.doc - Taking a look at the treasury yield...

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Taking a look at the treasury yield curve, it demonstrates relationship between yields and maturity of the treasury fixed income securities. It explains yields of securities at fixed maturitiesranging from a couple months to 30 years, therefore also known as Constant maturity treasury rates (CMTs). The slope of treasury curve represents the economic growth. There are three shapes curve:Normal yield curve: It exhibits an upward sloping curve. Healthy economies show an upward sloping curve although the interest rate may differ from time to time.Flat yield curve: As the name suggest it is a flat curve. It is an indication of slow economy growthInverted yield curve: It is the best indicator of recession in the economy.The current treasury yield curve looks like a slight inverted curve possibly suggesting a future recession. The inverted curve began back in May 2019 and continues to decline. This indicates

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Term
Summer
Professor
n/a
Tags
Yield Curve, Treasury Yield Curve

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