If SHY is rising and TLT is falling in value, the yield curve is steepening.
In much of provincial Russia, this decline seems to have started steepening some time ago.
As the muni yield curve steepens investors will start interpreting that steepening as a reflection of increased risk.
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But that is just the point: the digital curve these days is shifting and steepening faster than ever.
The price of milk, cheese and other dairy products is also expected to surge, while ranchers face steepening feed costs.
The steepening difference between and short- and long-term issues could be taken as a positive, since it restores the traditional relationship.
These are enough reasons to keep the longer end of the domestic yield curve under relative pressure and in a bull-steepening trend.
Short-end bill prices fell sending implied yields higher by five basis points forcing the gradient of the curve higher as the steepening process grinds forward.
Recent cuts in short-term interest rates should help banks, by steepening the yield curve (the difference between long and short rates) and thus boosting the spread they can earn.
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While the yield curve may sound like a wonkish concept reserved only for professional bond traders, retail investors can now profit from flattening and steepening in the curve, too.
Eurodollar futures plunged at the sight of another strong posting and within minutes reflected a surge in implied yields of 17 basis points with the curve steepening at further maturities.
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For investors, the second quarter is starting to look a lot like the second quarter of last year: a steepening volatility curve, weaker economic data and increased concerns over Europe.
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Amid the anxiety of what might come next from the Fed, the yield curve continues its steepening bias with nearby Eurodollar futures making slim gains while deferred contracts are firmly lower midweek.
But that was before the Fiscal Cave, which left the Bush tax cuts in effect for the lower and middle class, but raised them for the upper bracket, steepening the progressivity even further.
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The NAND market picked up on higher OEM-related demand, improving quarter-on-quarter sales, particularly in solution products such as Solid State Drives (SSDs) for notebook PCs and Embedded Multimedia Cards (eMMC), but a steepening price decline hampered stable growth.
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