Tuesday, September 05, 2006

Chevron found oil, so investors are changing the shape of the yield curve. The 3-mo./10-yr. spread went from -28 BP to -19 BP in one day!

4 comments:

Anonymous said...

It appears that the near term rates on the Corporate Bond yield curve are slowly starting to invert...though 1,2,3 years are now nearly flat.

Anonymous said...

Debra, my data shows that the spread between the 3month and 10 yr went from -0.29% on 9/1 to -.20 today. Is that not 9 basis points? (not 19??)...Morey

Deborah said...

Dear Morey,

The improvement is 9 BP for a new spread of -19. Here is the raw data from WSJ:

Date 3-mo - 10-yr = Spread:
1-Sep:. 5.03 4.73 = -30
5-Sep: 5.01 4.73 = -28
6-Sep: 4.97 4.78 = -19

Best,
Deb

Deborah said...

Dear Anonymous,

Corporates have certainly lagged the Treasury market in the shape of the curve.

Best,
Deb