More on the J.E.C. testimony day yield curve conundrum: Dan Gross points to a terrific Smart Money article all about the yield curve.
Its a great primer about various types of Yield Curves: Normal, Steep, Inverted, Flat or Humped.
>
Source:
The
Living Yield Curve
One Bond Strategy
http://www.smartmoney.com/onebond/index.cfm?story=yieldcurve#normal
Upside-Down Interest Rates
Bad news for the U.S. that is worse news for the
world.
Daniel Gross
Slate, Friday, June 3, 2005, at 3:31 AM PT
http://www.slate.com/id/2120161/
Since 1954 — when fed funds data first started — the average spread between funds and the 10 year t bond
has been 0.8%. That does include the periods of a steeply negative curve.
What is unusual is not where the yield curve is now.
Rather, it is where it was a year ago when it was over 4% — except for a few months in 1989 that was an all time high.
Excellent Spencer.