Market feels the force
Sunday Express|October 01, 2023
FIVE-MINUTE GUIDE TO... THE INVERTED YIELD CURVE
Harvey Jones
Market feels the force

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.

Bu hikaye Sunday Express dergisinin October 01, 2023 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

Bu hikaye Sunday Express dergisinin October 01, 2023 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

SUNDAY EXPRESS DERGISINDEN DAHA FAZLA HIKAYETümünü görüntüle
VAR is losing its appeal for fuming Frank
Sunday Express

VAR is losing its appeal for fuming Frank

A BRENTFORD barricade following skipper Christian Norgaard's red card earned Thomas Frank's side their first away point of the campaign.

time-read
1 min  |
November 24, 2024
Worst Welsh run piles pressure on boss Gatland
Sunday Express

Worst Welsh run piles pressure on boss Gatland

WALES slumped to a 12th straight Test defeat as the pressure ramped up for head coach Warren Gatland at Principality Stadium.

time-read
1 min  |
November 24, 2024
Londoners waiting for home 'exiled' to North
Sunday Express

Londoners waiting for home 'exiled' to North

COUNCIL chiefs have been warned they may be breaking the law by sending thousands of people on housing waiting lists in London to the North and the Midlands.

time-read
1 min  |
November 24, 2024
New drug for blood cancer a 'game-changer'
Sunday Express

New drug for blood cancer a 'game-changer'

PATIENTS with a rare and deadly form of blood cancer have been \"given a second chance\" by a game-changing new drug.

time-read
1 min  |
November 24, 2024
How satellites pose threat to nuclear subs
Sunday Express

How satellites pose threat to nuclear subs

HUGE leaps in satellite technology will make Britain's nuclear missilecarrying submarines less of a deterrent to China and Russia.

time-read
2 dak  |
November 24, 2024
Rescue centres in crisis over rise in dumped dogs
Sunday Express

Rescue centres in crisis over rise in dumped dogs

THE RSPCA has warned of a shocking rise in pets being abandoned across the country, many in desperate need of care.

time-read
2 dak  |
November 24, 2024
Paul's in-laws sell up to end village pub row
Sunday Express

Paul's in-laws sell up to end village pub row

PAUL Hollywood's in-laws have sold their 600-year-old pub and ended a bitter row with villagers who have declared \"war is over\".

time-read
2 dak  |
November 24, 2024
Monster deals for return of Thrones
Sunday Express

Monster deals for return of Thrones

GAME OF Thrones stars are set to be offered huge new deals to return for a big-budget movie sequel.

time-read
1 min  |
November 24, 2024
When arch pop rivals sang together as one...
Sunday Express

When arch pop rivals sang together as one...

BAND Aid creator Sir Bob Geldof has revealed the chart-stopping bands on Do They Know it's Christmas? \"could not stand each other\".

time-read
1 min  |
November 24, 2024
Trump 'may save Biden Jr from jail’
Sunday Express

Trump 'may save Biden Jr from jail’

PRESIDENT Joe Biden's son Hunter is facing the grim prospect of being sentenced to prison twice in the space of just three days next month.

time-read
1 min  |
November 24, 2024