Flat Yield Curve = Recession? Not So Fast.
1 A yield curve is a line that plots the interest rates, at a setpoint in time, of bonds having equal credit quality butdiff ering maturity dates.3 Engstrom, Eric and Steve
2 A yield spread is the difference between yields on differing debt instruments of varying maturities, credit ratings and risk, calculated by deducting the yield of one instrument from another.
3 Engstrom, Eric and Steve Sharpe; “(Don’t Fear) the Yield Curve,” FEDS Notes. Washington: Board of Governors of the Federal Reserve System, June, 28 2018.
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