Explaining the Current Yield Curve May 2014

by | May 26, 2014 | Asset Management, Videos

In our most recent podcast, Tom and Brendan discussed the yield curve. We’ve found that the average investor usually doesn’t understand what brokers, advisors, or financial media members are talking about when they refer to the yield curve. If you missed that podcast we highly recommend checking it out. In this video, Tom takes the yield curve discussion a step further by describing the current yield curve here in May of 2014.

As you’ll see in the video, we currently have a yield curve that is almost flat. This usually signifies a period of economic uncertainty. Right now, the Fed is keeping short term rates low in an attempt to boost the economy. They’re also buying Treasury bonds through quantitative easing. This has created a very low short term yield and an artificially low longer term yield.

Make sure to watch the video to see a visual example of the current yield curve and to hear a more in-depth analysis of the situation from Tom.

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