Actually, probably not. A 10% YTM is still a pretty good rate but there seems to be a pretty high demand for money now. That means the market isn’t predicting recession (which is pretty tough 3 years out anyway) but a return to normalcy. Some central banker would need to get on this because there is clearly a money problem right now.
joey, what I have read says an inverted yield curve should be interpreted as a harbinger of a poor economy. In the last 6 recessions, 5 of them saw an inverted yield curve beforehand. Am I wrong?
You are right. But inverted yield curves don’t really happen in the US at least at these levels or at least not in my memory.
We had an inverted yield curve for a short minute last year in the US, I think. Not much of one, but we did.
“You are right. But inverted yield curves don’t really happen in the US at least at these levels or at least not in my memory.” we have had several. let me know if you want me to email you a good wall st journal piece from 2007.
If it says it will be sold in 3 years that should mean the 6th coupon has been paid out prior to the sale right?
daj224 Wrote: ------------------------------------------------------- > “You are right. But inverted yield curves don’t > really happen in the US at least at these levels > or at least not in my memory.” > > > we have had several. let me know if you want me to > email you a good wall st journal piece from 2007. sure screenname at yahoo dot com