Yield Curve Near Highs

By on March 31, 2010

Bespoke Investment Group pointed out that the yield curve is near highs signaling better economic times ahead:

For those who are unfamiliar with the yield curve, we strongly suggest reading the NY Fed’s discussion on the indicator as a leading indicator of economic activity. In short, high values in the yield curve are positive for the economy, while an inverted yield curve (negative spread between long and short term rates) is a harbinger of economic weakness down the line. While there are many variant definitions of the yield curve, for our analysis we defer to the NY Fed which defines the yield curve as the difference (in basis points) between the yield on the 10-Year and 3-Month US Treasury Note.

Source: Bespoke Investment Group
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