Learn how riding the yield curve can boost your bond investment returns by profiting from declining yields before maturity. Understand yield curve strategies today.
The yield curve is a graphical representation that plots the interest rates of bonds with equal credit quality but varying maturity dates. A normal yield curve slopes upward, indicating higher ...
Investors who own bonds or a bond fund watch to see if Treasury yields and interest rates will rise and to what extent. If rates are increasing, they may avoid bonds with longer-term maturities, ...
Later in this article, I will display a chart revealing a consistent pattern of when a recession is most likely to begin. From a trader's viewpoint, pattern recognition is essential for successful ...
The 3-Month Treasury Bill’s rate of 5.50% is currently the highest among US treasuries as of June 2023. It was 0% at the beginning of last year. The 3-month rate is currently higher than the 3-year by ...
In my 50-plus years of running money, I’ve noticed that the biggest market moves come from factors that have gone unnoticed – and right now, there’s a doozy lurking under the table. Amid all the ...
I still remember back in 2006, when the curve inverted ahead of the financial crisis. Hardly anyone outside of bankers, economists, hardcore investors and bond traders knew what it meant. But by 2008, ...
Yield curve re-inversions are not uncommon and can occur multiple times before a recession, as seen in historical examples from 1988, 1998, and 2006. The 2022-23 inversion was unique due to ...
Many are concerned that a deeply inverted yield curve signals a recession. When we look at the current yield curve, we see an opportunity to add exposure to fixed income. The most direct implication ...
Treasury Bill ETF BIL is an excellent reward-for-risk asset with a yield above 5% and virtually no risk. The yield curve suggests prolonged higher interest rates, though a 75 bps cut is priced into ...
The yield curve typically slopes up and to the right, with longer-dated bonds sporting higher yields than short-term Treasury bills. A historic yield-curve inversion may spell trouble for the U.S.