So Congress passed the Wall St. Bailout after re-naming it the Financial Rescue Plan. Within the hour, Secretary of the Treasury Paulson's office announced an interest in hiring 5 - 10 money managers to oversee the $700 billion windfall. :)
Meanwhile, the commercial paper yield curve still can't generate enough data to complete the graph. Quality spreads (the high-yield index less the ten-year treasury) registered an all-time high.
3 comments:
What happened to the yield curve? It looks like it turned into a parabola.
I assume you mean the slight downturn at the long end.
Long-term investors with 30-year horizons, such as life insurance companies and pension trusts, often dperess the longest bond. They buy so many of them to meet their obligations that they drive up the price (and the yield down).
THis happens when they expect rates to decline over the long term.
Post a Comment