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Contrast the yield curves data of March 1993 and March 1998. Notice that the 1998 yield curve is almost flat, it has very little slope,

  1. Contrast the yield curves data of March 1993 and March 1998. Notice that the 1998 yield curve is almost flat, it has very little slope, while the 1993 yield curve has a very steep slope. What could account for this difference in slopes?
  2. Contrast the yield curves data of March 2002 and December 2008. What could account for this difference? What does the March 2002 yield curve say about long-term versus short-term interest rates? What does the 2008 yield curve say about long-term versus short-term interest rates?
  3. Contrast the slopes of the March 2002 yield curve with that of March 2019. What do we call a yield curve that possesses the shape of the March 2019 yield curve? Why might the March 2019 yield curve be downward sloping? What does this indicate?

Date1 Mo2 Mo3 Mo6 Mo1 Yr2 Yr3 Yr5 Yr7 Yr10 Yr20 Yr30 Yr3/31/93N/AN/A2.953.093.323.964.425.245.726.03N/A6.933/30/98N/AN/A5.185.35.445.655.695.75.795.726.065.983/28/021.76N/A1.792.122.73.724.314.915.295.426.03N/A12/15/080N/A0.030.280.50.751.021.51.922.533.292.983/29/192.432.442.42.442.42.272.212.232.312.412.632.813/25/200000.070.190.340.410.560.770.881.231.45

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