With short-term rates near zero and long-term rates around 4%, the yield curve is clearly positive. This sharply positive slope reflects loose monetary policy at the Fed that is designed to stimulate the economy. For reference, the yield curve was flat in October 2007 as short-term rates were near 4%.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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