Market Review and Trends
Are we headed for another recession? The yield curve is at its flattest since 2007, before the Global Financial Crisis…
By The Fifth Person  •  June 29, 2018
You may or may not already have heard that the U.S. treasury yield curve is at its flattest since 2007 – the year before the 2008/09 Global Financial Crisis. Is this a potential sign of things to come? But before I delve into that, I guess a bit of background information is in order.

What is the yield curve?

The yield curve shows the spread (difference) between the interest rates of short-term and long-term U.S. Treasury bonds. For example, the current interest rate for the 10-year U.S. Treasury bond is 2.83% and the interest rate for the one-year U.S. Treasury bond is 2.33%, therefore the spread is 0.5 percentage points. Usually, interest rates for long-term bonds are higher than for short-term bonds. And rightly so because investors demand a higher yield for locking their money away for a longer period of time, which ......
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By The Fifth Person
The Fifth Person believes in spreading a message that financial literacy and sound investment knowledge can help people around the world achieve financial independence and lead better lives for themselves and their loved ones.
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