3 ms·
From what you've said, it's my interpretation that if the 10 year interest rate falls below the 5 year interest rate, then it means that bond purchasers specula
by posix_compliant 8y ago
From what you've said, it's my interpretation that if the 10 year interest rate falls below the 5 year interest rate, then it means that bond purchasers speculate that money in 10 years will have more purchasing power than money in 5 years.
Is that interpretation correct?
- ves 8y ago...money in five years in five further years. the idea is that you’re evaluated on your purchasing power ten years hence, but in one case you have to liquidate your position five years in and find another position with the same risk characteristics.