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An upward sloping yield curve suggests that financial markets expect short-term interest rates to rise in the future. Clearly, in 2004, this makes sense because short-term interest rates are already at or near their lowest level in more than four decades.
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www.frbsf.org/education/activities/drecon/answerxml.cfm...
www.frbsf.org/education/activities/drecon/answerxml.cfm?selectedurl=/2004/0407.html
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It’s about something called the Treasury yield curve — a medical diagnostic chart for banks and the economy. When the Fed loosens money, and short-term rates are pulled well below long rates, banks profit enormously from the upward-sloping yield curve.
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mjperry.blogspot.com/2009/03/real-bank-bailout-upward-s...
mjperry.blogspot.com/2009/03/real-bank-bailout-upward-sloping-yield.html
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that "the upward-sloped yield curve is the real bailout for the banking system." The expected record $3 billion profit for Wells Fargo in the first quarter 2009 is a direct result of the upward sloping yield curve and the increasing interest spread in the first quarter to 4.6%. The recovery of the banking sector should...
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mjperry.blogspot.com/2009/04/real-bank-bailout-upward-s...
mjperry.blogspot.com/2009/04/real-bank-bailout-upward-sloping-yield.html
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As illustrated in the above graph, the normal shape, or slope, of the yield curve is upward (from left to right), ... A sharply upward sloping, or steep yield curve, has often preceded an economic upturn. The assumption behind a steep yield curve is interest rates will begin to rise significantly in the future.
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www.pimco.com/LeftNav/Bond+Basics/2006/Yield_Curve_Basi...
www.pimco.com/LeftNav/Bond+Basics/2006/Yield_Curve_Basics.htm
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Another theory is the Liquidity Preference Theory (LPT), and it seems to have a better explanation for the upward sloping yield curve. According to the LPT, people demand a risk premium for longer maturities over the short-term maturities.
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Larry Kudlow pointed out recently that “the upward-sloped yield curve is the real bailout for the banking system.” The expected record $3 billion profit for Wells Fargo (WFC) in the first quarter 2009 is a direct result of the upward sloping yield curve and the increasing interest spread in the first quarter to 4.6%.
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www.dailymarkets.com/stocks/2009/04/10/the-real-bank-ba...
www.dailymarkets.com/stocks/2009/04/10/the-real-bank-bailout-upward-sloping-yield-curve-2/
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Bond investing resource for individuals new to bonds and fixed-income enthusiasts ... Most commonly, the Yield Curve depicted is the one for US Treasury Securities. Yield Curves can have many shapes. A "Normal" Yield Curve is the most common shape. Normal curves are characterized by a gently upward sloping shape.
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www.bondknowledge.com/introfaq5.html
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Jun 5, 2009 ... Normally, yield curves are upward sloping with steepness varying from time to time. Why the curve looks like that and its implications are ...
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www.bworldonline.com/Research/populareconomics.php?id=0...
www.bworldonline.com/Research/populareconomics.php?id=0111
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Upward sloping yield curve is the usual case -- more demand for short-term bonds than long-term bonds. Downward sloping yield curve -- contractionary ...
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faculty.maxwell.syr.edu/ddutkowsky/classes/ECN-481/ECN%...
faculty.maxwell.syr.edu/ddutkowsky/classes/ECN-481/ECN%20481%20(5),%20The%20Yield%20Curve.ppt
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