Re:The U.S. Yield Curve Has Inverted
by csense on Tuesday December 04, 2018 @03:26AM
(#18597466)
> You're confusing the yield at market rates with the interest paid by the borrower
This is true when you're talking about trading a bond in the secondary market. But for primary sales (i.e. Treasury auctions for brand-new bonds that didn't exist before), the debtor (Treasury's) effective IR is a function of the sale price.
This is true when you're talking about trading a bond in the secondary market. But for primary sales (i.e. Treasury auctions for brand-new bonds that didn't exist before), the debtor (Treasury's) effective IR is a function of the sale price.