READING 59: SPOT, FORWARD, AND PAR RATES

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READING 59: SPOT, FORWARD, AND PAR RATES #69

Open Grefer opened 4 years ago

Grefer commented 4 years ago

https://www.melonsblog.cn/2020/02/reading-59-spot-forward-and-par-rates.html#more

Grefer commented 4 years ago

An inverted yield curve reflects the condition where long-term rates are less than short-term rates, giving the yield curve a negative slope.

Grefer commented 4 years ago

The forward curve will be above the spot curve when the spot curve is rising. The forward curve will also cross the spot curve when the spot curve reaches its maximum (or extreme) value. The forward curve will be below the spot curve when the spot curve is declining.