[RT] Re: Implications of an inverted yield curve

[Proffittak@xxxxxxx]

In a message dated 1/18/00 9:23:44 AM Eastern Standard Time, 
OnWingsOfEagles@xxxxxxxxxxxxx writes:

<< 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. >>
Hello
the demand for the 10 year is LOWER, and that's is why the yield is higher!
This sounds like a   spread trade by institutions,,
they buy the 30 year and sell the 10 year
the implication  are terrible,  if shorter bonds give higher yields,
they are betting on the beginning of inflation