Tuesday, 22 September 2015

Interest rates at center stage

I wrote in last Saturday's "Weekly Indicators" column that interest rates have taken center stage. To make the point, I downloaded a few graphs, but I thought I would post them separately.

To begin with, let's compare treasury bond yields with corporate bond yields (here, BAA grade bonds).  In the graph below, I have normed them to the point where they show as equal one year ago:



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