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 24th September 2020 (Mo = month, Yr = Year): 24/09/2020 Time to Maturity Euro area Central Government Bond Yield Rates U.S. Treasury Bond Yield Rates 1 Mo - 0.08% 3 Mo -0.60% 0.10% 6 Mo -0.62% 0.11% 1 Yr -0.66% 0.12% 2 Yr -0.71% 0.14% 3 Yr -0.74% 0.16% 4 Yr -0.74% - 5 Yr -0.72% 0.27% 7 Yr -0.63% 0.46% 10 Yr -0.49% 0.67% 20 Yr -0.17% 1.19% 30 Yr -0.05% 1.40% Considering both yield rates on 24th September 2020, depict the yield curves charts and describe the implied market outlook in the Euro area and the U.S. market to the top management.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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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 24th September 2020 (Mo = month, Yr = Year):

24/09/2020


Time to Maturity

Euro area Central Government Bond Yield

Rates

U.S. Treasury Bond Yield

Rates

1 Mo

-

0.08%

3 Mo

-0.60%

0.10%

6 Mo

-0.62%

0.11%

1 Yr

-0.66%

0.12%

2 Yr

-0.71%

0.14%

3 Yr

-0.74%

0.16%

4 Yr

-0.74%

-

5 Yr

-0.72%

0.27%

7 Yr

-0.63%

0.46%

10 Yr

-0.49%

0.67%

20 Yr

-0.17%

1.19%

30 Yr

-0.05%

1.40%

Considering both yield rates on 24th September 2020, depict the yield curves charts and describe the implied market outlook in the Euro area and the U.S. market to the top management.

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