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A comment on U.S. Treasury Yield Curve Inverts for First Time Since 2007. Parent comment

Re:U.S. Treasury Yield Curve Inverts for First Time Since 2007 by posix_compliant on Saturday March 23, 2019 @01:19AM (#19469172)
From what you've said, it's my interpretation that if the 10 year interest rate falls below the 5 year interest rate, then it means that bond purchasers speculate that money in 10 years will have more purchasing power than money in 5 years.

Is that interpretation correct?

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Re:U.S. Treasury Yield Curve Inverts for First Time Since 2007 by ves on Saturday March 23, 2019 @03:00AM (#19469383)
...money in five years in five further years.

the idea is that you’re evaluated on your purchasing power ten years hence, but in one case you have to liquidate your position five years in and find another position with the same risk characteristics.

[ Parent | on HN ]