Friday, November 18, 2005

Inverted yield curve ...

Well, yield curve has become a buzz word again.. thanks to a closing gap between the short-term and long-term interest rates (0.08 as opposed to an average 0.75 spread). Economists fear that if rates in the short term exceed the long term, we could have the infamous "inverted yield curve" on our hands, a sign of impending economic downturn (as thought by some people, others debate it as well). This will ofcourse have implications on the real-estate bubble, and the rest of the economy as well..

Lets hope we ride this one out!!

1 Comments:

Blogger Quantjock said...

You are right..inverted yield curve is an aberration (doesnt happen quite as often), I mean why would people pay higher rates for shorter term?

9:11 AM, November 21, 2005  

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