Saturday, May 7, 2016

Yield Curve May 2016

The yield curve as of yesterday is nearly flat. This is one of the lowest and flattest yields ever and driven by FED policy. It may be good for the Stock Market and may reflect the abysmal growth in the economy but it lacks reality. Money should have value.
The above is the 30:30 spread, the shortest to longest. It has reached a record LOW! That should be a concern, no faith in growth.
The 90:10 spread is shown above an it too is at all time low.

One suspects that things will not be getting any better at this level.