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The Yield Curve Explained: Why Does Everyone Watch It Before a Recession? | Canadian Investing
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Episode Summary Lending money for ten years should pay more than lending for two because of the greater uncertainty over time. But when the yield curve inverts, short-term lending pays more. This episode decodes the curve, its three shapes, and the bond market expectations that drive this famous recession signal.
Key Concepts
The Baseline Curve: By plotting the yields of Government of Canada bonds at every maturity (from three months to thirty years), we isolate time as the only variable…
The skinny
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