Guys, still very much coming to terms with the basics of how the current yield curve is and why it is where it is.
As I think I understand it. the front end is held down by low interest rates and the yields further out are high due to the Treasury selling off longer term maturities to finance the massive debt. these yields are high to entice buyers. Im not quite sure why the 10yr-30yr section is so flat though. Is this normal? Is it due to the fed buying up as much debt as it does and artificially keeping the 30yr yield lower than it really should be?
any comments links to relevant info or other wise would be much appreciated.
Thanks in advance!!
No, it's because there's a lot of demand from pension funds and various structured notes out there...