Quote:
Originally Posted by jyl
Rates so low that the yield curve inverts
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The yield curve, as I understand it, inverts for a different reason.
It inverts because demand for long term Treasury bills goes up compared to short term treasury bills. The bidding process on bills mean that the long term ends up at a lower rate.
Inverting the yield curve is also a by product of rapid rate increase.
These were my understandings based on what was shared in a previous thread.
I'm curious why you differ?