Question

Research today’s yield curve as reported by the US Department of the Treasury, at: Report your...

Research today’s yield curve as reported by the US Department of the Treasury, at:

Report your rates for today

Describe the shape/slope of the yield curve your numbers imply

Explain how and why this might give a forecast for the health of the US economy.

Homework Answers

Answer #1

It is an upward sloping normal yield curve. The bond with the higher maturity period is giving a higher rate of interest.

The yield curve shows the future value of U.S bonds. Hence describes the future health of the economy. The yield curve points out to the certain uncertainties that may come to the economy. Its effectiveness is certain to the particular public content as a predictive tool.

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