- Most Positive
- Last Week
- Other ∨
- About Us ∨
- Also Show ∨
- Search ∨
- Contact Us
The yield curve refers to the line drawing out a bond’s yield and its respective maturities, with a flatter slope signifying weaker growth outlook.
Analysts blamed the lull in trading conditions over the Thanksgiving period for the lack of a stronger selloff in the wake of the eurozone’s strong economic data.
On the predictions by the Office for Budget Responsibility, he said: "The challenge for us as a nation is to prove them wrong." Shadow chancellor John McDonnell said the hit to the economy would "hit all of society".
BBC political editor Laura Kuenssberg said Mr Hammond, who has been under pressure from Eurosceptic Tory MPs, would be "broadly content" with how his big day had played out, but that "very difficult questions" about the state of the economy remained.
Strategists at Société Générale say if longer-term yields begin to recover, asset valuations could look particularly steep once the risk-free rate, usually the 10-year Treasury yield TMUBMUSD10Y, -1.54% rose.
By their estimate, the U.S. equity market could shed 15% of its value if the 10-year Treasury yield hit 2.75% (see chart below). An annual survey conducted by J.P. Morgan showed 31% of those polled forecast the 10-year Treasury yield to push above 2.75% by the middle of next year.