Discover and read the best of Twitter Threads about #YieldCurve

Most recents (3)

#RBI cut by 40bps each of these👇
#Repo rate to 4%
#ReverseRepo to 3.35%
#BankRate to 4.25%

Decision was reached after 5:1 vote,with #ChetanGhate,lone voice calling for 25 bps cut

#MPC meet was held ahead of schedule from 3rd-5th,June

#EMI #moratoroum extended by 3 more months
Moratorium extension till 31st August 2020,is both timely &reflective of @narendramodi govt's alacrity--Big relief to #MiddleClass

Measure to convert #moratorium interest payment into #TermLoan payable in FY21,is helpful

This will reduce #NPAs &stress on banks' balance sheets
#RBI's cut in #Repo will reduce cost of funds&extension of #moratorium will be supportive of financial stability;#Rates across #YieldCurve will move lower from current levels

Fall in #ReverseRepo rate will disincentivise banks from #hoarding #liquidity&coax them to lend

Read 10 tweets
1/4 To be clear on the #YieldCurve, as there's way too much discussion about its inversion and what it means when it's really simple. Since banks borrow at short-rates & lend (receive) long rates, if the yield curve inverts for an extended period of time, 2/4
2/4 banks will naturally restrict lending activity (as net interest margins, or "NIMs," will be negative and thus the banks would lose money making new loans). Credit conditions are the primary driver of short-term changes in aggregate demand. 3/4
3/3 Short-term economic performance is highly reliant on credit conditions. If banks tighten up and stop lending, overall spending falls and in turn the value of things like cars, houses, and capital equipment (often used to secure loans) falls in response to reduced demand. 4/4
Read 6 tweets
#CBOE #VIX #volatility index, also known as #WallStreet's "fear gauge" records biggest one-day spike in 10 months
MSCI’s All-Country World Index, which tracks #shares across 47 countries, fell for a six straight day on Monday - marking its longest losing streak this year.
Read 10 tweets

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