Yield Curve Inversions - AK2

09/22/19 • 28 min

In this episode, we discuss the inversion of the US Treasury yield curve as well as the flattening of other global yield curves. A discussion on the ramifications of yield curve inversions follows.

Topics include:

US Treasury yield curve inversion

Yield curve in Japan, Germany, and France

Explanation of what the yield curve is and why it’s important

Possible responses by the Federal Reserve to the yield curve inversion

10 year sovereign bond rates globally

Links:

https://tradingeconomics.com/united-states/government-bond-yield

https://tradingeconomics.com/japan/government-bond-yield

https://tradingeconomics.com/germany/government-bond-yield

https://tradingeconomics.com/france/government-bond-yield

https://realinvestmentadvice.com/wp-content/uploads/2019/08/Fed-Rate-Cuts-Yield-Curves-Recessions-081619.png

https://tradingeconomics.com/bonds

In this episode, we discuss the inversion of the US Treasury yield curve as well as the flattening of other global yield curves. A discussion on the ramifications of yield curve inversions follows.

Topics include:

US Treasury yield curve inversion

Yield curve in Japan, Germany, and France

Explanation of what the yield curve is and why it’s important

Possible responses by the Federal Reserve to the yield curve inversion

10 year sovereign bond rates globally

Links:

https://tradingeconomics.com/united-states/government-bond-yield

https://tradingeconomics.com/japan/government-bond-yield

https://tradingeconomics.com/germany/government-bond-yield

https://tradingeconomics.com/france/government-bond-yield

https://realinvestmentadvice.com/wp-content/uploads/2019/08/Fed-Rate-Cuts-Yield-Curves-Recessions-081619.png

https://tradingeconomics.com/bonds

Previous Episode

Negative Interest Rates - AK1

In this episode, we discuss negative interest rates and the implications of the negative interest rate policy recently pursued by Denmark’s Jyske Bank.

Topics include:

Global negative yielding debt

EU pensions mandate to hold negative yielding sovereign debt

Ways to avoid negative interest

Negative interest rates in Denmark

Negative interest rates in Switzerland

Links:

https://www.marketwatch.com/story/that-near17-trillion-pile-of-negative-yielding-global-debt-its-a-cash-cow-for-some-bond-investors-2019-08-22

https://www.youtube.com/watch?v=ElxmkyQkbbU

https://www.businessinsider.com/jyske-bank-denmark-negative-interest-savings-over-million-2019-8

https://www.reuters.com/article/us-ubs-group-negative/ubs-plans-to-charge-rich-clients-for-swiss-cash-deposits-idUSKCN1UQ26A

Next Episode

Japanification - AK3

In this episode we discuss monetary policy in Japan and its long term consequences. We also look at the relationship between the yen and the dollar, gold, and bitcoin.

Topics include:

MT Gox

The Japanese Yen

Japan’s debt to GDP ratio

Japan’s money supply

Demographic concerns in Japan

Intervention in the markets by the Bank of Japan

Links:

https://en.wikipedia.org/wiki/Mt._Gox

https://www.macrotrends.net/2550/dollar-yen-exchange-rate-historical-chart

https://goldprice.org/gold-price-charts/20-year-gold-price-history-in-japanese-yen-per-ounce

https://tradingeconomics.com/japan/government-debt-to-gdp