Wednesday, 13 April 2011

US Govt Yield Curve

3M US GOVT RATE
This has been trending lower


6M US GOVT RATE
This has been trending lower as well


12M US GOVT RATE
This has stayed more or less flattish




2 YR US GOVT RATE
Rates have been moving higher


10 YR US GOVT RATE
Rates has been moving higher here as well




30 YS US GOVT RATE
Rates have been moving higher here as well


So what we are seeing here is that on the short end of the YC , rates are moving lower - so people are buying bonds


While on the medium to long end of the YC - people have been selling bonds 


It is interesting to note that money is moving from the medium to long end of the YC to the short end


This can be also seen as a flight to quality move in a very subtle way


Let us see how the risky assets behave in the coming months


If we are to see a peak - then rates should move lower and that should happen across the board





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