
- UID
- 223294
- 帖子
- 220
- 主题
- 86
- 注册时间
- 2011-7-11
- 最后登录
- 2016-4-19
|
billbelemy22, the yield curve was a given - we were being asked to interpret the implied expectations about the direction of short term interest rates. Accordingly to LPT the yield curve represents expectations + a premium. Once you subtract the premium the implication is that short term rates are headed downwards. In other words, the premium makes flat what would otherwise (under Pure Expectations) be a downwards sloping yield curve. |
|