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You are a senior financial analyst and have been asked to analyse recent developments in the Euro era and the U.S markets and advise the top management on the economic conditions in both markets. You have collected data on the euro area yields of the central government bonds and the U.S. treasury bond yields. For this purpose, you have downloaded the following data from the European Central Bank and the U.S Federal Reserve Bank on 23rd April 2021 (Mo = month, Yr = Year): %3D 23/04/2021 Euro area Central U.S. Treasury Time to Maturity Government Bond Yield Rates Bond Yield Rates 1 Mo З Мо 6 Mo 1 Yr 2 Y. 3 Yr 4 Yr 5 Yr 7 Y 10 Y 20 Yr 30 Y 0.08% 0.10% 0.11% 0.12% 0.14% 0.20% -0.50% -0.62% -0.65% -0.70% -0.74% -0.74% -0.72% -0.63% -0.51% -0.17% -0.05% 0.27% 0.46% 0.67% 1.19% 1.40% REQUIRED: a) Considering both yield rates on 23rd April 2021, depict the yield curves charts and describe the implied market outlook in the Euro area and the U.S. market to the top management. You are a senior financial analyst and have been asked to analyse recent developments in the Euro era and the U.S markets and advise the top management on the economic conditions in both markets. You have collected data on the euro area yields of the central government bonds and the U.S. treasury bond yields. For this purpose, you have downloaded the following data from the European Central Bank and the U.S Federal Reserve Bank on 23rd April 2021 (Mo = month, Yr = Year): %3D 23/04/2021 Euro area Central U.S. Treasury Time to Maturity Government Bond Yield Rates Bond Yield Rates 1 Mo З Мо 6 Mo 1 Yr 2 Y. 3 Yr 4 Yr 5 Yr 7 Y 10 Y 20 Yr 30 Y 0.08% 0.10% 0.11% 0.12% 0.14% 0.20% -0.50% -0.62% -0.65% -0.70% -0.74% -0.74% -0.72% -0.63% -0.51% -0.17% -0.05% 0.27% 0.46% 0.67% 1.19% 1.40% REQUIRED: a) Considering both yield rates on 23rd April 2021, depict the yield curves charts and describe the implied market outlook in the Euro area and the U.S. market to the top management.
Expert Answer:
Answer rating: 100% (QA)
The shape of the yield curve changes with the state of the economy The normal or upward sloping yiel... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
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