Is the yield curve about confidence fairies or inflation and interest rates expectations?

Here are the Japanese, German and British curves. So, you tell me.

Japanese Yield Curve

Japanese Yield Curve

German Yield Curve

German Yield Curve

British Yield Curve

British Yield Curve

Source: Bloomberg

About 

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

1 Comment

  1. Dave Holden says:

    There’s an interesting discussion of yield curves here – you’ll probably understand it better than I do..

    http://www.cobdencentre.org/2011/07/what-is-behind-the-predictive-power-of-the-yield-curve