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Visit the US Treasury Department's website and find current data on the US Treasury yield curve by following the following sequence of links:

Resource Center > Data and Charts Center > Daily Treasury Yield Curve Rates.

(a) Identify the date on which you accessed the data.

(b) What are the yields on Treasury bonds with the following time to maturity: 3 months. 6 months, 1 year, 10 years, and 30 years?

(c) Plot the current US Treasury yield curve either by hand or using Excel or a computer graphing utility.

(d) Use the liquidity preference theory to interpret the current yield curve.

Does it appear that the market expects a recession any time soon? What does the yield curve tell you about long-run inflation expectations?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92634144

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