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.
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
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