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flat yield curve

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › flat yield curve

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.
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  • October 23, 2014 at 4:56 pm #205660
    syed ali
    Member
    • Topics: 92
    • Replies: 54
    • ☆☆

    the shorter and longer term yield are very close to each other which is also a predictor of an economic transition how please explain this

    October 23, 2014 at 5:57 pm #205678
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54776
    • ☆☆☆☆☆

    I cannot explain. I do not know where you read this, but it is not a predictor of a transition! It simply means that investors are expecting that interest rates will remain stable in the future.

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