Anmerkungen:
In: European Capital Markets Institute (ECMI), Commentary no 76 - September 2021
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments 2021 erstellt
Beschreibung:
This commentary examines the slope of the sovereign bond yield curve before and during the Covid-19 pandemic. The yield curve as a sentiment indicator on the future growth prospects of the euro area is upward sloping, indicating that borrowing money long-term is more expensive than short-term borrowing. Sovereign bond yields have been rising since January 2021, signalling that investors expect economic expansion as vaccination gets underway in Europe. The ten-to-two-year term spread for euro area benchmark bonds is positive, showing that a recession in the euro area is unlikely to occur in the near future