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
Showing posts with label Yield Curve. Show all posts
Showing posts with label Yield Curve. Show all posts
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
Subscribe to:
Posts (Atom)
Posts
