What is the Yield Curve, and Why is it Flattening?

You may have read news articles or heard somewhere that "the yield curve is flattening," but what does that mean? Find out with today's video!

DISCLAIMER:
This channel is for education purposes only and is not affiliated with any financial institution. Richard Coffin is not registered to provide investment advice and as such does not provide recommendations on The Plain Bagel - those looking for investment advice should seek out a registered professional. Richard is not responsible for investment actions taken by viewers.

[ThePlainBagel]

What are your thoughts about the flattening yield curve? Do you believe investors should shift their holdings or stay the course with their current investments? Let me know down below!

[weixiangtan]

In 9 minutes this video has taught me more about the yield curve than my university finance module has in 3 months

[kennethrosario]

Who came here after yesterday's 800 point drop in the Dow? So well explained! Thanks man!

[jasonmaggard]

I have a degree in economics and trade the yield spread as well as other investments. Im pleasantly surprised how well you explained this. Great Job!

[matviko]

This video is EXCELLENT. I've been listening to macro videos, so many mentions of yield curve and I was sort of getting it. I also read 2-3 articles and watched 2-3 other videos. This one really brought all the complexity together in an incredibly simple and easy to understand manner.
Kudos to you! and thank you!

[johamu]

I'm glad you used the 2-10 yield curve. I have been seeing more people talk about 3-5 or 1m-30yr because the numbers are more dramatic. We have to be consistent about our vocabulary if this is going to mean anything.

[michaelernst]

after all, the stock market has predicted 9 of the last 5 recessions.

[Elroy]

The Yield Curve just inverted yesterday, Friday 22 March 2019.

[tytrvd]

well here we are, the curve was right

[Icarus]

Thank for info. There is news about yield curve inversion all over the news today but no one seems to explain it as well as you did

[mynameisntpatrick]

"Hey no need to panic!"
*one year later*
"EXPLAIN A YIELD CURVE AND WHY EVERYONE IS PANICING PLEASE"

[cosmicblaze]

Very clearly explained, and professionally presented. Well done, you are an inspiration to the younger generation!

[UltimateBargains]

Investors generally aren't concerned about "locking in" their investment when they buy long-term debt, because they can always sell that debt at any time.
Long-term yields decreasing relative to short-term yields may indicate a price reduction of short-term debt instead of a price increase in longer term debt, because short-term maturity redemption may have more risk than "riding out" a recession by holding longer term debt instruments.
The first priority of investors is return *OF* their investment before return *on* their investment.

[HamishHodder]

Very well explained! I look at the 10-2 bond spread occasionally to see if it is becoming inverted, which is essentially the same as watching the yield curve flatten.

[kevinbyrne]

Thank you for posting a clear presentation of this subject.
The economic problem in the U.S. is that during Obama's presidency, interest rates were so low that anyone with money to invest, invested it in the stock market, so the stock market was overvalued. Now that the recession has ended, the Federal Reserve is raising interest rates again, which lures people to buy bonds again, which reduces the amount of money that's pouring into the stock market, which reduces the prices of stocks, and hence further reduces the incentive to invest in the stock market. The U.S. is undergoing a long, slow (overdue) correction of the stock market. But I don't see any significant problem(s) in the rest of the U.S. economy.

[leonnalee]

thank god someone who knows how to explain things simply and knows what they are talking about...hard combination to find on the internet

[wayneshamba]

Bro I had economics, investment management and financial management modules in uni but you explained the yield curve way better! Simplified but way better, thank you.

[BenFelixCSI]

This might be the perfect yield curve explainer video.

[christiankincaid]

This is, by far, the best short video on this topic I've ever seen. thank you.

[freeworld]

Best explained video on yield curve by far. Many before you tried and failed and many might in the future, but here you've outdone yourself with the simplicity mate. Bravo!