Yield Curve more or less flat

[The Kin]

The spread between the two year and ten year is virtually non-existent at this point. The two and three year now have the same yield.

What happens next?

 

[jem]

Is the theory that when it goes flat the stock market collapes within a few months.

I know it worked that way the last time.

Where can I see a picture of the yield curve. If you are correct, I am going to have to get my dad out of the market. Which will be hard cause he has been making money lately.

 

[jnbadger]

A quick snapshot.

http://bonds.yahoo.com/rates.html

 

[jem]

It is getting flat. and now that I looked at it I think flat is a warning and inverted is the sell signal. funny how some peoples minds work in pictures.

 

[Pabst]

Quote from The Kin:

The spread between the two year and ten year is virtually non-existent at this point. The two and three year now have the same yield.

What happens next?

Why did you start this thread in Chit Chat? Start again in another forum like econ. BTW: Treasuries to corporates are widening also. Ominous.

 

[TGregg]

Quote from Pabst:

Why did you start this thread in Chit Chat? Start again in another forum like econ.

That's what I was just wondering. Doesn't seem to have been moved to CC.

Moving to Econ.

 

[BKuerbs]

Quote from jem:

....
Where can I see a picture of the yield curve. ....

To compare the Yield Curve and the SP500 have a look at the Dynamic Yield Curve

regards

Bernd Kuerbs

 

[hoodooman]

You might want to look at junk bond closed end funds. They tanked big time about 12 months before the market did in 1999.

 

[jem]

bernd thanks for dynamic yield curve. I had seen it years ago. That is an eduation all by itseld.

 

[pepper_john]

The flatening is in the 2yr-10yr segment, the spread between 2 yr. rate and 3 month rate is still 50 bps.

It's not clear whether the curve will invert.