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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

plotting interest rates — or bond yields — across various maturities(passive) is created byA yield curve

The combined actionleadsto a steepening yield curve

while short - term rates have fallencausinga steepening of the yield curve

the short - term rates ... to startto createa yield curve

Fed tightening(passive) usually caused bya flattening yield curve

the Fed ... the curve ,could resultin yield curve steepening

the Fed ... unableto preventa “ flattening ” of the yield curve

longer term rates rallying(passive) led byA flattening of the yield curve

even if the Fed keeps short - term rates lowerresultingin a steepening yield curve

short - term rates will rise fastercausinga “ flattening of the yield curve

However , longer - term rates have not risen at the same pacecreatinga flatter yield curve

During 2013 , longer - term rates increasedresultingin a steepening of the yield curve

Short - term rates could increase at a rate greater than longer - term ratescausinga flattening of the yield curve

Rising short - term rates and an improving economyshould resultin a steepening of the yield curve

long - term rates ... short - term ratescausesa flattening of the yield curve

why would the Fed wantto createa flat yield curve

while FED rates have been pushing up the short endcreatinga flatter yield curve

Currently , short - term rates , which are controlled by the Federal Reserve , are rising faster than longer - term ratescreatinga flat yield curve

the Kingdom 's planto createa yield curve

rising short term rates and falling long term rates(passive) caused byA flattening yield curve

falling short - term rates or rising long - term rates(passive) caused bya steepening yield curve

to anticipate a shift in the Fed ’s stanceresultingin a steepening of the yield curve

while those at the long end have been fallingcausinga flattening of the yield curve

Or long - term rates might go up faster than short - term ratescontributingto a steepening of the yield curve

The surprise cut reduced short - term rates more than their long - term counterpartsresultingin a steepening of the yield curve

The combination of a drop in longer - term rates and an increase in shorter - term rateshas causeda flattening of the yield curve

therefore , longer - term interest rates fall relative to shorter - term interest ratescausinga flattening of the yield curve

a forthcoming base rate hike by the Fedleadingto a steepening of the yield curve

That is , each joint probability distribution function is integrated over an operating range of interest ( i.e. , minimum and maximum limits on the particular metric which correlate to the parameters of the statistical modelsto createa yield curve

the long end has started to rallyis leadingto a steepening yield curve

In fact , the Fed has a long history of cycling between lowering rates too much ,causinga steepening yield curve

In fact , the FED has already experienced cycles between lowering rates too much ,causinga steepening yield curve

rising short term rates The US shale oil industry caps oil prices Source(passive) caused byA yield curve flattening

the Gulf Arab state 's planto createa yield curve

The Fed 's easing , which we think will be seen as preemptiveshould leadto a steepening of the yield curve

short rates rising(passive) is created bya flattening yield curve

rates moving higherresultingin a steepening yield curve

long rates slipcausinga yield curve flattening

levels on one and five - year corporate bonds should fall faster than levels on the ten - year corporate bondleadingto the yield curve steepening

The financial instrument that could provide the foundation for a single market already exists on the balance sheet of the European Central Bank ( ECB ) : legally , the ECB could issue “ debt certificates ” ( DCs ) across the maturity spectrum and in sufficient amountsto createa yield curve

recession fearstriggeredrecession fears

to inversion and ultimately a recessionwould leadto inversion and ultimately a recession

likelywill ... leadlikely

a high risk of recession in the US in 2020creatinga high risk of recession in the US in 2020

2011 | 4:00 PM EDT Financial pain(passive) caused by2011 | 4:00 PM EDT Financial pain

of the rates of return on several hundred high - quality , fixed income corporate bonds available at the measurement date and the related expected duration for the obligationscomposedof the rates of return on several hundred high - quality , fixed income corporate bonds available at the measurement date and the related expected duration for the obligations

to trouble and an inverted yield curvecan leadto trouble and an inverted yield curve

US stock market peaks in April 2010 and May 2011.(click to enlarge)Chart 3continuedledUS stock market peaks in April 2010 and May 2011.(click to enlarge)Chart 3continued

of the rates of return on several hundred high - quality , fixed income corporate bonds available at the measurement date and corresponding to the related expected durations of future cash outflows for the obligationscomposedof the rates of return on several hundred high - quality , fixed income corporate bonds available at the measurement date and corresponding to the related expected durations of future cash outflows for the obligations

to an inverted yield curve where the short end is higher than the long end , a foreboding sign that suggests the possibility of a recessioncan leadto an inverted yield curve where the short end is higher than the long end , a foreboding sign that suggests the possibility of a recession

to increased fears of a global economic slowdown and possible recession in the USleadingto increased fears of a global economic slowdown and possible recession in the US

an investment demand for gold , GLD , which rose to 118.7 on the week ending August 13 , 2010 and is now at 119.7 continuing a breakout that began August 6 , 2010.Gold , $ GOLDhas createdan investment demand for gold , GLD , which rose to 118.7 on the week ending August 13 , 2010 and is now at 119.7 continuing a breakout that began August 6 , 2010.Gold , $ GOLD

a prolonged underperformance(passive) caused bya prolonged underperformance

fears that the Federal Reserve could tip the economy into recession by raising rates too quicklyis sparkingfears that the Federal Reserve could tip the economy into recession by raising rates too quickly

to an inverted curve , where the short - end rates are higher than longer term , a reliable recession indicatorcan leadto an inverted curve , where the short - end rates are higher than longer term , a reliable recession indicator

some anxiety about the prospect of a slowdown or impending recession with some investors looking as to whether Fed officials recognise this as a reason for them to become more cautious in their rate outlook for 2019is causingsome anxiety about the prospect of a slowdown or impending recession with some investors looking as to whether Fed officials recognise this as a reason for them to become more cautious in their rate outlook for 2019

investors to prick up their earscausesinvestors to prick up their ears

concerns among investorsis causingconcerns among investors

as the Fed cuts ratesmay resultas the Fed cuts rates

to a decline in the industry 's net interest margincontributedto a decline in the industry 's net interest margin

investors to derisk out of US Treasuriescausinginvestors to derisk out of US Treasuries

to an inverted curve ( 2-year Treasury yields greater than 10-year yields ) , which over time has been a reliable signal of heightened recession riskleadsto an inverted curve ( 2-year Treasury yields greater than 10-year yields ) , which over time has been a reliable signal of heightened recession risk

from yields on the 40th to 90th percentile of U.S. high quality bondscreatedfrom yields on the 40th to 90th percentile of U.S. high quality bonds

to an underperformance of the Fund ’s positions which were shorter than the Indexledto an underperformance of the Fund ’s positions which were shorter than the Index

to Minneapolis Fed President Neel Kashkari voting against a rate hikeledto Minneapolis Fed President Neel Kashkari voting against a rate hike

from two quarter - point Fed fund hikes year - to - date and geopolitical uncertaintyresultingfrom two quarter - point Fed fund hikes year - to - date and geopolitical uncertainty

the Fed to hike rates faster in tried and tested fashion rather than accelerate Treasury saleswould likely causethe Fed to hike rates faster in tried and tested fashion rather than accelerate Treasury sales

in an eventual widening of credit spreadscould resultin an eventual widening of credit spreads

opportunities to extend advance maturities and lock - in attractive rateshas createdopportunities to extend advance maturities and lock - in attractive rates

sometimessparkssometimes

to strong performance in both equities and fixed incomecontributingto strong performance in both equities and fixed income

to an inversion ... meaning the short - end rate would actually go higher than the longer - end yieldcould leadto an inversion ... meaning the short - end rate would actually go higher than the longer - end yield

The move in mortgages(passive) is being led byThe move in mortgages

equity values(passive) caused byequity values

from 17 straight interest - rate increasesresultingfrom 17 straight interest - rate increases

to rate cuts ... but not always to recessionshas ... ledto rate cuts ... but not always to recessions

headwinds for growth , including less incentive for banks to lenddoes createheadwinds for growth , including less incentive for banks to lend

serious margin pressurescreatesserious margin pressures

in diminished net interest incomeresultingin diminished net interest income

from short - term rates rising fasterresultingfrom short - term rates rising faster

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Smart Reasoning:

C&E

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