Charts That Count: Flattening Yield Curve

The spread between 10-year and 2-year Treasury bond yields dropped below 40 basis points after the Federal Reserve promised to push on with rises in interest rates, while the European Central Bank delayed them until late next year. John Authers discusses the signal that the yield curve is sending, and asks whether the Fed is really poised to raise rates too much.

[justicewarrior]

Just discovered this channel, already addicted to it!

[stevenmartinez]

The illustrations were great, I’m not prepared for it, I haven’t bounced back from the last time I lost my house. My family picked up some student debt since then. Thankfully still at the job since 1998,
but I am informed. Hold on tight.

[richardgordon]

Outstanding video⚡️Thanks John Authers and FT.

[endrity]

I would really like to know how this mirror display works. It looks really awesome.

[briancarpenter]

As a finance grad, I concur. Also, I love graphs and I talk to myself a lot.

[wertzui]

Yepp, dont worry buy into a 10 year bull market, nothing can go wrong.

[hiteshlingwal]

Thanks a lot sir you made my concept clear

[diontaedaughtry]

Thank you this was very helpful and informative 👍👍

[ericanderson]

So if the FED raises rates and the 10 year does not adjust then the yield curve flattens. Why then is the FED raising rates? They will be sure to invert the curve just as the did in 00 an d 08. Why do it then? If you know for sure you will be inverting the curve, why do it? The last time the curves inverted the FED had powder to fire with. Now they only have 1.75% not even half way to where they were when they caused a recession the last time. How does that stack up to the impending recession? And ultimately when the recession hits due to the machination of the central banks, who gets hurt? Why its going to be you. Yeah that's right you, Mr Joe 401k investor. Just like in 00 and 08 when half of your life savings was wiped out, its going to be wiped out again. Meanwhile did the uber rich take a fall? Well no, no they didn't. Seems like a pretty awesome scam to me.

[maxstraat]

Didn't understand the part after 2:44

[Charmicaela]

Does this link to the US raising the trade tarif with china?

[slovokia]

Given how much of the yield curve central banks control, is there much information in them anymore? Are the judgments of private market actors fully reflected in the prices of long term government bonds when major central banks around the world are engaged in substantial quantitative easing? We are using a history formed during periods of mostly positive term premiums to make predictions about a present with frequently negative estimated term premiums.

[magicalmanfromwonderland]

Looking at john writing this all backwards. Good job. Lol.

[Mikesorrento]

I've noticed the financial media is starting to talk about this more and more. And at the same time, they state that the economy is doing wonderfully. Here's my question. How can the economy be doing wonderfully when the CBO says that the US will be running trillion dollar plus annual budget deficits as far as the eye can see? That's like saying my neighbor is doing great because they drive a BMW 7 series, take vacations, and live in a big house all on $80, 000 a year salary while racking up $100, 000 a year in credit card debt, year after year. In reality, they are not doing well, it only looks like they are. Ever notice how virtually NO ONE ever talks about our growing National Public Debt? It's as if it were not even there.

[andypanda]

Don't wet your pants! After the yield curve inverts you have 12 to 18 months to exit the market!