RetireBy90
Thinks s/he gets paid by the post
Hi All, hoping to get some education from the many wise here.
Lots of talk about inversion of yields where shorter term are higher than long term. I understand why longer should be higher yields, more risk of unknown demands higher payback. I also understand why an inversion is a troublesome sign in that it points to higher rates and slower economy.
However, all the attention seems to be on 2yr/10yr spread. Yields this morning have 2yr at 2.5%, 5 year at 2.75% and 10yr at 2.7%. Earlier this week 2yr was above 10yr but no attention to the 5 year and relation to 2 or 10yr.
Anyone know why 2/10 is important but 2/5 doesn't receive attention ?
Seems to me that the market is saying the inflation will last between 5 and 10 years, with rates signaling expected inflation direction. Any thoughts on what the 3 rates are telling us ?
Lots of talk about inversion of yields where shorter term are higher than long term. I understand why longer should be higher yields, more risk of unknown demands higher payback. I also understand why an inversion is a troublesome sign in that it points to higher rates and slower economy.
However, all the attention seems to be on 2yr/10yr spread. Yields this morning have 2yr at 2.5%, 5 year at 2.75% and 10yr at 2.7%. Earlier this week 2yr was above 10yr but no attention to the 5 year and relation to 2 or 10yr.
Anyone know why 2/10 is important but 2/5 doesn't receive attention ?
Seems to me that the market is saying the inflation will last between 5 and 10 years, with rates signaling expected inflation direction. Any thoughts on what the 3 rates are telling us ?