US treasury yield curve flattened following hawkish comments from Fed’s Yellen on last Friday and is now flattest since 2007. Experts say the yield curve is hurting the bank profitability and is closely tied to economic conditions.
James Helliwel, Head of Markets at Lex Van Dam Trading Academy and Tip TV’z Zak Mir discuss the relevance of the treasury yield curve, Helliwel said the flattening yield curve mainly represents rise in rate hike bets and partly due to inflation concerns. Helliwel also noted the flattening of the yield curve affects bank’s profitability since bank’s borrow short and lend long. Helliwel and Mir also discuss broker forecasts, Oanda sentiment, most popular news in business and finance.