Yield Curve Analysis: What is Flattening?

Jun 3, 2022

By The Small Exchange

Overview

A flat yield curve implies that yields of all durations (2YR, 10YR, 30YR, etc.) are relatively the same. Normally, yields increase as the duration of the bond increases, but sometimes the curve can fall into a rare environment whereby short-term rates are close to or even higher than longer-term ones. Futures traders Mikey and Frank show you what this can look like in the market, and then give you the tools to trade the current flat yield curve.

Learn how a normal yield curve operates, what a flat yield curve looks like, and how you can access the US yield curve using small, standard, and simple futures products.

Content

0:05 Yield Curve Analysis: What is Flattening?

1:30 This is a Normal Yield Curve

3:40 This is a Flat Yield Curve

4:20 This is the Current Yield Curve

4:55 NOB Spreads

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