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What does the shape of a treasury bond yield curve tell you about expected future inflation?
17 years ago

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drwls
Inflation is expected to be high in the distant future if long term (10 to 30 year) loan rates are much higher than short term rates (6 months to two years). Long term rates are usually only a few percent higher. Sometimes long term rates are lower, if the Federal Reserve is acting to cool off an overheated economy or speculative stock market by raising short term rates.
17 years ago

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