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While the economic implication of an inverted yield curve is that a slow
down lies ahead, the implication more applicable to trading is that long
yields are likely to stop rising.
Earl
----- Original Message -----
From: "Gitanshu Buch" <OnWingsOfEagles@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Tuesday, January 18, 2000 7:27 AM
Subject: [RT] Implications of an inverted yield curve
> Well - maybe this is presumptory and a short term intraday
phenomenon - but
> the 10-30 yield curve inverted this AM by a wee bit.
>
> Demand for 10s is higher than demand for 30s - as reflected by higher
> current yield on 10s v/s 30s.
>
> Maybe veteran fixed income traders on the list could enlighten us on
>
> a/ Historical reasons where yields on 10s have exceeded yields on 30s.
> b/ Economic (and stock market) implications thereof.
>
> At your convenience.
>
> Thanks.
>
> Gitanshu
>
>
>
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