Could anyone explain how “10 yr-2yr is 15 bps below the mid-cycle slope of 65 bps” signifies that we are in late expansion? Also what is mid-cycle slope?
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Where did you see this?
In one of the whatsapp group.
Have you asked them for an explanation?
Author removed the question before anyone can respond? I just saw these lines.
I’d ignore it.
Concentrate on the curriculum.
Yeah. Makes sense.
Hi S2000magician, this line is from mm mock. the question asks you to identify which stage of the business cycle are you in.
10yr -2yr = 191 bps, mid cycle slope = 110bps.
MM says this means steeper yield curve, hence initial recovery.
and other statement was
10yr-2yr is 15bps below the mid cycle slope of 65 bps.
MM says this means yield curve is flattening hence late expansion
this is from mark meldrum’s mock. Would appreciate if anyone can advise.