This isn't necessarily a bad thing. The quick reaction to a steepened yield curve is to buy equities. Banks can now loan more money. So a steepening yield curve in theory helps to boost the debt and equity markets.
-Image Courtesy of Zero Hedge
Monday, January 11, 2010
Yield Curve Record
Today, the yield curve hit a record. At 380 basis points, which incidentally was the widest spread between the 2 Year and the 30 Year ever, it has never been easier for banks to make money on the short-long interest spread.
This isn't necessarily a bad thing. The quick reaction to a steepened yield curve is to buy equities. Banks can now loan more money. So a steepening yield curve in theory helps to boost the debt and equity markets.
-Image Courtesy of Zero Hedge
This isn't necessarily a bad thing. The quick reaction to a steepened yield curve is to buy equities. Banks can now loan more money. So a steepening yield curve in theory helps to boost the debt and equity markets.
-Image Courtesy of Zero Hedge
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