Friday, December 23, 2005
The Yield Curve Is a Story
Is the flat yield curve inverting? The Two-Year treasury note is now yielding more 3,5,and 7 year note.With the Two-Year only yielding one basis point below the 10 year note,we now are at a critical juncture.Mortgage interest rates will also be affected by this eventually . Short-term uncertainty is on the rise and that's a message of every inverted yield curve.Those in non-traditional mortgages should pay close attention to the coming changes in interest rates because debt payments may go up rather quickly.The above comments are based on whether the 6 month T-bills will yield more than the 20 year note.