Yield Curve more or less flat

Discussion in 'Economics' started by The Kin, Nov 16, 2005.

  1. The spread between the two year and ten year is virtually non-existent at this point. The two and three year now have the same yield.

    What happens next?
  2. jem


    Is the theory that when it goes flat the stock market collapes within a few months.

    I know it worked that way the last time.

    Where can I see a picture of the yield curve. If you are correct, I am going to have to get my dad out of the market. Which will be hard cause he has been making money lately.
  3. jnbadger


  4. jem


    It is getting flat. and now that I looked at it I think flat is a warning and inverted is the sell signal. funny how some peoples minds work in pictures.
  5. Pabst


    Why did you start this thread in Chit Chat? Start again in another forum like econ. BTW: Treasuries to corporates are widening also. Ominous.
  6. TGregg


    That's what I was just wondering. Doesn't seem to have been moved to CC.

    Moving to Econ.
  7. BKuerbs


    To compare the Yield Curve and the SP500 have a look at the Dynamic Yield Curve


    Bernd Kuerbs
  8. You might want to look at junk bond closed end funds. They tanked big time about 12 months before the market did in 1999.
  9. jem


    bernd thanks for dynamic yield curve. I had seen it years ago. That is an eduation all by itseld.
  10. The flatening is in the 2yr-10yr segment, the spread between 2 yr. rate and 3 month rate is still 50 bps.

    It's not clear whether the curve will invert.
    #10     Nov 17, 2005