One could argue that a flat yield curve will force banks to make more and riskier loans.
In other words, a flat yield curve has the potential to chase investors from equities into bonds.
Major banks like JPMorgan Chase, Citigroup and Bank of America are long sufferers from the flat yield curve curse.
We expect a nearly flat yield curve over the next few years.
For major banks like JPMorgan Chase, Citi, and Wells Fargo lending is less lucrative in an environment of flat yield curves.
FORBES: Paul Ryan Bashes Bernanke For Killing Savings, Distorting Markets
Savings and loan institutions, recent victims of the flat yield curve with huge redemptions in outstanding fixed-mortgage paper, will be able to operate at wider spreads.
Historically, a flat yield curve is negative for the economy.
With a flat bond yield curve and oil quots moving lower, the oils are in for a tough year.
U.S. stocks were flat while the yield on 10-year Treasuries slid to 1.62%.
FORBES: Jobs Report Looked Bad, But Was It QE3-Bad? Bernanke May Just Extend Low-Rate Pledge
By keeping the yield curve flat, QE2 pressures banks to make more higher-return loans as investing in treasuries and short-term facilities provides a lower and lower profit margin.
FORBES: The Fed Did Its Job, Now Washington Needs To Come Through With Fiscal Policy
This would keep the yield curve relatively flat or mildly inverted as the Fed resumes hiking.
After a decade in which the market has been flat, an 6% dividend yield looks pretty attractive.
U.S. stock were flat around midday, while the yield on the 10-year U.S. Treasury note rose to 2.84% from 2.73% Wednesday.
Important markets tops come with a handful of key ingredients, including high valuations, a lot of optimism, and a treasury yield curve that is flat or even inverted.
FORBES: Interest Rates, Equities And Bonds: Getting Ahead Of The Curve
That is one reason why the yield curve has stayed pretty flat despite the Fed's repeated tightening of short-term rates.
If you want to play the flattening yield curve, consider buying FLAT.
Essentially, that means FLAT is a leveraged play on the yield curve.
When the yield curve is inverted or relatively flat, it is a sign that investors are so afraid of future economic weakness that they are willing to take low interest rates on long-term holdings for fear that returns will become even less attractive later on.
Flat-tax proponents say that the reform would yield many economic benefits.
ECONOMIST: The Conservatives toy with a politically risky idea
Shorter-term yields were more static, as the yield on the three-month bill remained flat at 0.12%, and the two-year bill rose to 0.74% from 0.73% Wednesday.
Shorter-term Treasuries were mixed, as the yield on the ultra-safe three-month bill fell slightly, to 0.10%, from 0.11%, while the yield on the two-year note was flat at 0.78%.
To exploit a flattening yield curve in a touchy investment environment, go with FLAT.
Compared to conventional flat-panel TV sets, 3D sets are much more expensive and yield higher profit margins.
The Bombay Stock Exchange's 30-share benchmark Sensex, which had been trading flat before the rate decision, ended down 1.5%, while the yield on Indian government bonds rose to 7.90% after the announcement, from 7.86% earlier.
Stock futures were down, while the yield on the benchmark 10-year U.S. Treasury note was flat, at 2.91%.
The yield on the benchmark 10-year U.S. Treasury note was flat at 3.64%.
The Bombay Stock Exchange's 30-share benchmark Sensex, which had been trading flat before the rate decision, was 1.3% lower just before 0800 GMT while the yield on Indian government bonds rose to 7.90%, compared with 7.86% earlier.
Italy held a successful auction of five-year government bonds Monday morning at a 6.29% yield, lending some ground beneath markets, which held onto its gains from late last week and opened flat.
应用推荐