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Due to the current risk of default on Government securities, investors are selling billions of treasury securities and the yields on the short term securities

Due to the current risk of default on Government securities, investors are selling billions of treasury securities and the yields on the short term securities are higher than the longer term ones.

A. Explain what type of yield curve this is

B. Why are investors selling their bonds

i. Give an answer related to risk and

ii. Give an answer related to yields and prices.

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