SEPTEMBER was a tough month for investors as the US stock market crashed, but the apparent cause may have baffled many as financial analysts blamed it on a mysterious force called the yield curve.
Apparently, this curve has the power to predict the future, in particular whether the economy is heading for a recession, which seems to be the case today.
So what is this oracle and how does it work? The yield curve is a simple line that plots the interest rates paid by bonds running for different periods of time, say, two, five, 10 or 30 years.
Bond yields typically follow a sloping upward curve, as short-dated bonds pay lower rates of interest, which steadily rise for bonds with a longer maturity.
In normal times, a two-year bond may yield, say, 3 per cent, a five-year bond may yield 3.4 per cent and a 10-year bond around 4 per cent. It is the same principle with fixed-rate savings bonds, an everyday savings product sold by banks and building societies. Savers would normally expect a higher rate of interest if they locked their money away for five years, rather than one or two.
Denne historien er fra October 01, 2023-utgaven av Sunday Express.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra October 01, 2023-utgaven av Sunday Express.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
'ENGLAND MUST NAIL MASTER PLAN TO TOPPLE ALLBLACKS'
ELLIOT DALY has revealed the master plan to beat the All Blacks at Twickenham next weekend - and he should know what it is.
TEN HAG STILL ON TIGHTROPE
IF Erik ten Hag needs an opinion on how ruthless Sir Jim Ratcliffe is then he should give Fergie a call.
Tables turned as O'Neil inspires a last-gasp revival
IT was not the maiden win Wolves craved but this felt as good as any victory.
My hospital patients have no idea I write Hollywood blockbusters on days off
SHE IS one of America's bestselling authors with a host of celebrity fans such as Victoria Beckham and Michelle Keegan, both of whom have been spotted reading her novels.
Family plead with killer to reveal where mum hidden
THE killer of Sarah Wellgreen should reveal where he hid her body to give her family closure six years after she disappeared.
'I've found Lucan hiding in Australia'
THE SON of Lord Lucan's murder victim Sandra Rivett believes he has finally tracke( down the fugitive aristocrat in Australia - and will name him for the first time on TV Neil Berriman tells how he is convinced he has cracked one of British history's biggest murder mysteries in a new BBC three-part documentary, to coincide with the 50th anniversary of the crime.
Outspoken Haigh and Lammy set for chop in reshuffle
LABOUR insiders are braced for a post-Christmas reshuffle as the Prime Minister relaunches his Government following the resignation of Sue Gray.
Jezza: m not allowed fun after heart op
FORMER Top Gear host Jeremy Clarkson says he's \"not allowed to have fun any more\" after heart surgery.
Jenrick calls for school fees VAT relief for 'brave' Armed Forces
TORY leadership candidate Robert Jenrick made a late plea to force families to be spared VAT on school fees.
Kemi: Right leader could kick Keir out in one term
KEMI Badenoch is entering the Conservative leadership race's last week with a plea for Tory voters who backed Reform UK to \"come home\".
