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It doesn't take much to persuade most investors of the wisdom of that approach, since the municipal yield curve -- the progression of rates through the maturity spectrum -- provides relatively little extra payment for lengthening one's commitment.
While the Fed has traditionally conducted its open market operations using short-term Treasury bills, rates on those are already close to zero, forcing the bank to move out the maturity spectrum if it wants to stimulate the economy.
On Tuesday, yields across the Treasury maturity spectrum extended their recent tumble.
The real pressure on the yield curve has come in the shorter end of the maturity spectrum.
Prices on U.S. government debt rose across the maturity spectrum during Wednesday's afternoon trading session, reversing earlier declines.
Your alternative is to reach out for yield at the long end of the maturity spectrum and risk suffering a catastrophic loss when rates climb.
Similar(43)
Yield curve 101 The yield curve plots the relationship between the interest rates and time to maturity of the entire spectrum of U.S. Treasury securities.
Asset-intensive industries, such as oil and gas, are all pressured to increase their level of digital maturity across the full spectrum from subsurface discovery to life-cycle management.
What I remember about the Volcker-induced pressure cooker of 1981-82 was the wild ride in Treasury paper along the entire spectrum of maturities.
We don't believe this spectrum represents a "maturity model," in which attitudes in a country predictably shift in a given direction over time (say, from less privacy conscious to more).
It is already happening, and now is the time to take inventory and identify where your company falls on the spectrum of digital maturity.
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CEO of Professional Science Editing for Scientists @ prosciediting.com