Discover and read the best of Twitter Threads about #2yeartreasuryyield
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#US #InvertedYieldCurve & panic
On wed, #DowJones, #nasdaq & #SP500 saw more than 3% fall, highest in year so far
Reason? #10YearTreasuryYield < #2YearTreasuryYield, #spread being 0.04%, lowest since 2007
- Treasury notes are #USGovernment securities issued for 2, 3, 5 & 10 year
On wed, #DowJones, #nasdaq & #SP500 saw more than 3% fall, highest in year so far
Reason? #10YearTreasuryYield < #2YearTreasuryYield, #spread being 0.04%, lowest since 2007
- Treasury notes are #USGovernment securities issued for 2, 3, 5 & 10 year
Starting with basics first.
1. #InterestRate & #BondPrices have #InverseRelationship, meaning if interest rises bond prices fall & vice versa
1. #InterestRate & #BondPrices have #InverseRelationship, meaning if interest rises bond prices fall & vice versa
Why? eg. if currently #Coupon rate on a bond is 6% & int rate is also 6% & face value of bond is rs. 100. Meaning buyer of bond is willing to pay more or less complete face value of rs. 100
