Archive for the 'Economy' Category

The yield curve and predicting recessions

Friday, April 7th, 2006

Interesting paper by Jonathan Wright that studies the use of the slope of the Treasury yield curve as a leading economic indicator, with inversion of the curve being thought of as a harbinger of a recession. He considers a number of probit models using the yield curve to forecast recessions. The paper concludes that Consistent [...]

End of bond yield curve inversion?

Thursday, March 30th, 2006

With the most recent Federal Reserve target rate hike to 4.75% on 3/28, the yields of longer-term bonds are finally moving up. As of this moment, it sure looks like the percularity of the inverted bond yield curve is ending.