Wednesday, December 06, 2006

Econbrowser: The yield curve and foreign purchases of U.S. debt

Econbrowser: The yield curve and foreign purchases of U.S. debt:
"Some new research that suggests that the current negative spread between long-term and short-term yields may be a little less worrisome than earlier studies had led us to conclude, to the extent that the negative spread in part results from an unusually low term premium on U.S. bonds rather than an expectation of future declines in short-term yields. One factor that may be depressing that term premium is foreign holdings of U.S. securities."
Pretty interesting stuff! Thanks to Financial Rounds for pointing this one out!

1 comment:

Anonymous said...

Nice piece of info...Thanks