I am a total beginner and I am initiating myself in the study of financial markets, but I struggle understanding the relation between the yield curve(government bonds) and an index.
Please could someone with more expertise have a read of this assumptions I have and tell me if they are correct? Because I read quite a lot of contradicting information all over the internet.
There are 3 types of yield curves: Normal, Flat and Inverted.
- When the government thinks the economy is overpriced and is taking action to prevent a bubble, we will see a flat or inverse yield curve.
- When the government thinks that expending needs to be created and the economy needs expanding we will see a normal/positive yield curve.
Submitted August 11, 2018 at 07:29AM by reddit_666 https://ift.tt/2MH78hK
