US Treasury Yield Curves – Revisited mid July 2013

We resume our intermittent analysis of the US Treasury Yield Curves today with a comparison between the mid July 2013 versus mid July 2012 (in chart 1) and mid July 2013 versus mid July 2011 (chart 2).                         Chart 1 – Mid July 2013 versus mid July 2012 In the absence of any meaningful data on ‘proper’ yield curve rates, this analysis will have to do.                         Chart 2 – Mid July 2013 versus mid July 2011 Finally, we compare mid July 2013 versus mid July 2007 (chart 3), the last time we experienced an Inverted Yield Curve and had any meaningful Yield Curve data. Note that the short versus longer term yield rates had a much flatter yield rate curve than in the recent past.  This is partly a reflection on the risk profile of financial gilt debt instruments back in 2007 versus today.   Chart 3 – Mid July 2013 versus mid July 2007 theMarketSoul ©2013

theMarketSoul ©2013

Related articles

• Inverted Yield Curve: The Curious Case of Benjamin Button (pramodshukla519.wordpress.com)
• Draghi Impotent as Fed Trumps ECB on Yield Curve: Euro Credit – Bloomberg (bloomberg.com)
• Published / Preprint: Bond Market Clienteles, the Yield Curve, and the Optimal Maturity Structure of Government Debt (moneyscience.com)
• 10-Year Treasury Auction Confirms 1 Percent Rise in Interest Rates in Two Months (247wallst.com)
• US Treasury 30 yr Auction for High Yield Rises to 3.66% (confoundedinterest.wordpress.com)
• How the Yield Curve Affects Your Investments (dailyfinance.com)
• How the Fed May Have Crushed Apple’s Cash by Billions (fool.com)
• This is what could happen to markets if the 10-year Treasury yield hits 4%: Martin Fridson (blogs.marketwatch.com)
• Stocks And Bonds Have A Stormy Love-Hate Relationship (businessinsider.com)
• Fed Keeps Low-Rate Policy Intact; Treasury Yields Spike Anyway; Hissy Fit Over Fluff (financialsurvivalnetwork.com)