4 ms·
Key yield curve inverts to worst level since 2007
- vannevar 7y agoSo in order to drive the yield curve negative, wouldn't that mean a massive increase in the amount of money going into bonds? So that they no longer have to incentivize people to buy bonds, but can actually make them pay to take them? And if there is such a massive increase in bond volume, where is that money coming from?
- gzu 7y agoThe fed had for years engaged in massive bond buying (QE). That has reduced supply of government paper and therefore reduced yields on the bonds.
- vannevar 7y agoSo not a massive increase in demand, but a massive drop in supply?
- deleted 7y ago[deleted]
- david-gpu 7y agoYou are confusing an inverted yield curve with negative interest rates.