long term interest rates: ARM's are on their way back
- 07/02/07 02:36 AM
I'm going to take a moment to get technical and talk about the yield curve on US Government bonds, bills and notes; specifically, I'm going to address what an inverted yield curve is and why it's important to you.The yield curve is a graph that plots yields (that's an interest-rate adjusted return on a bond) vs. maturity length for the bonds that the U.S. Government issues when it borrows money.Here's a peek at the yield curve as reported by yahoo's finance site this morning: Not very exciting, as curves go. It's almost flat -- it shows that the market expects about the … (1 comments)
long term interest rates: Slackers: Putting the slack in our "tight" job market
- 06/25/07 01:44 AM
Looking ahead to this week's meeting of the Federal Reserve Board governors, speculation has moved past current inflation (with last week's release of the Philly Fed data, showing the "core" consumer price index for May down in the 1% range) to where inflation is going to be a year from now.With unemployment figures low, the theory goes, continued growth in the economy will lead to wage inflation -- if there aren't additional workers, new jobs will have to pay more, which leads current jobs to pay more in order to retain current employees.) Positive wage inflation leads to higher short and … (2 comments)
I'm going to take a moment to get technical and talk about the yield curve on US Government bonds, bills and notes; specifically, I'm going to address what an inverted yield curve is and why it's important to you.The yield curve is a graph that plots yields (that's an interest-rate adjusted return on a bond) vs. maturity length for the bonds that the U.S. Government issues when it borrows money.Here's a peek at the yield curve as reported by yahoo's finance site this morning:
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