Laserfiche WebLink
Questions and Answers <br /> 1. What is the yield curve? A graph showing: <br /> Interest rates from overnight to 30 years <br /> Different curves for different products: <br /> Treasury curve <br /> Muni curve <br /> Libor curve <br /> 2. What is a good source for Springnet, <br /> Muni curves? Bloomberg page"MFVI" <br /> 3. What do different yield curves Steep curve predicts inflation <br /> mean? Flat to normal curve predicts stability <br /> Inverted curve predicts recession <br /> 4. What drives interest rates? Simple question—complicated answer <br /> Money supply and demand <br /> FOMC announcements <br /> Commodity prices <br /> Strong economy <br /> -Weak economy <br /> �b�i�scud �ceisers �e Springsted <br /> Questions and Answers <br /> 5. What events affect rates? FOMC rate changes <br /> Unemployment <br /> CPI and PPI(inflation) <br /> Economic announcements on: <br /> retail sales,inventories,manufacturing <br /> housing data,mortgage applications <br /> Currency <br /> International events <br /> 6. What is the relationship Typically stock market up,bond market <br /> Between equity markets and down and vice versa <br /> fixed income markets Equities up,debt down,rates up <br /> or <br /> Equities down,debt up,rates down <br /> Usually funds flow to best opportunity <br /> .,�,i<, i a:;�«,•. ,J Springsted <br />