Sunday, October 6, 2013

The Yield Curve’s Meaning


One of the strategies often suggested in the financial media is the “yield curve..” This has to do with the difference in yields of the different maturities of U.S. Treasury bills, notes and bonds.

There is usually a normal difference in return, depending on years to maturity of the security. But this can change, depending on economic conditions and influences, including fiscal activity of the Treasury and monetary action by the Federal Reserve,

But playing yield differences is a timing, short-term exercise which is tough enough for pros to succeed at. It’s best that average investors forget about this strategy.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

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