People are afraid of loaning jambass 182 and 364 day bills
276468975_RESULTS 2528-091 2501-182 2454-364 DTD 05-06-23.pdf (37.7 KB)
The reason why the 182 and 364 have underperformed is because the yield is almost getting inverted. Notice the 91-day t-bill is 411% oversubscribed.
If you earn the same or higher interest by lending for a shorter period, why would you lend for a longer term??
An inverted yield curve usually predicts an economic recession.
But I think it has more weight if the inversion was in larger time frames e.g the 2-year versus 10-year bonds.
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