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  • Yield Curve Cheatsheet

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    charles campisi
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    This document provides a cheat sheet for analyzing yield curve movements. It identifies four types of yield curve shifts - flattening driven by a falling long-end yield, flattening driven by a rising short-end yield, steepening driven by a rising short-end yield, and steepening driven by a falling long-end yield. For each type of shift, it indicates whether the associated momentum is bullish or bearish, which end of the curve is leading the shift, whether to take a long or short position, which part of the curve to trade, and some potential reasons for the shift.

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    yield curve cheatsheet

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    This document provides a cheat sheet for analyzing yield curve movements. It identifies four types of yield curve shifts - flattening driven by a falling long-end yield, flattening driven by a rising short-end yield, steepening driven by a rising short-end yield, and steepening driven by a falling long-end yield. For each type of shift, it indicates whether the associated momentum is bullish or bearish, which end of the curve is leading the shift, whether to take a long or short position, which part of the curve to trade, and some potential reasons for the shift.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    60 views1 page

    Yield Curve Cheatsheet

    Uploaded by

    charles campisi
    This document provides a cheat sheet for analyzing yield curve movements. It identifies four types of yield curve shifts - flattening driven by a falling long-end yield, flattening driven by a rising short-end yield, steepening driven by a rising short-end yield, and steepening driven by a falling long-end yield. For each type of shift, it indicates whether the associated momentum is bullish or bearish, which end of the curve is leading the shift, whether to take a long or short position, which part of the curve to trade, and some potential reasons for the shift.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Yield Curve Cheat Sheet

    Price Trade
    Curve Type Momentum Chart (Yield) Chart (Price) Notes Reasons
    Direction Action

    Short If you want to go short, Fed hikes more than


    Flattener Bearish Short-end Led
    Short-end sell short-end on rallies expected

    Low inflation, risk


    Long If you want to go long,
    Flattener Bullish Long-end Led off, safe haven,
    Long-end buy long end on dips
    more QE

    Long If you want to go long, Less fed rate rises, or


    Steepener Bullish Short-end Led
    Short-end buy short end on dips more fed rate cuts

    Short If you want to go short, Supply worries,


    Steepener Bearish Long-end Led
    Long-end sell long-end on rallies inflation, less QE

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