Cboe Volatility Index Description US Treasury Bonds 2s 10s Yield
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😎 Provide a short description of the CBOE volatility index
🤖 The CBOE volatility index, or VIX, is a measure of the expected volatility of the S&P 500 index over the next 30 days. It is calculated from the prices of SPX index options with near-term expiration dates. The VIX is often called the “fear index” because it tends to rise when investors are nervous or uncertain about the market direction, and fall when they are confident or complacent. The VIX is widely used as a gauge of market sentiment, a risk management tool, and a trading instrument. [www.cboe.com] [www.investopedia.com] [finance.yahoo.com] [www.cboe.com] [www.investopedia.com] [finance.yahoo.com]😎 When referring to US treasury bonds, what does this ratio mean exactly?
2s/10s Yield Curve %
🤖 The 2s/10s yield curve % is the percentage difference between the yields of the 2-year and 10-year U.S. Treasury bonds. It is a measure of the slope of the yield curve, which shows the relationship between the interest rates and the maturity dates of different bonds. The 2s/10s yield curve % can indicate the market’s expectations of future economic conditions, inflation, and monetary policy.😎 Type the mathematical formula with an example out of the most recent 2-year and 10-year bond yields
A positive 2s/10s yield curve % means that the 10-year bond has a higher yield than the 2-year bond, which implies that investors demand more compensation for lending money for a longer period of time. This is usually the case when the economy is growing and inflation is expected to rise. A negative 2s/10s yield curve % means that the 2-year bond has a higher yield than the 10-year bond, which implies that investors expect lower interest rates and lower inflation in the future. This is often a sign of an economic slowdown or a recession. A flat or zero 2s/10s yield curve % means that the yields of the 2-year and 10-year bonds are equal, which implies that investors have no clear expectations of future economic conditions.
The 2s/10s yield curve % is widely followed by market participants, policymakers, and researchers as a predictor of economic cycles and financial market performance. Historically, a steepening 2s/10s yield curve % has been associated with strong economic growth and rising stock prices, while a flattening or inverting 2s/10s yield curve % has been associated with weak economic growth and falling stock prices. However, there are also other factors that can affect the shape of the yield curve, such as changes in supply and demand of bonds, risk preferences of investors, and global market conditions. Therefore, the 2s/10s yield curve % should not be interpreted in isolation, but in conjunction with other economic indicators and market signals. [fred.stlouisfed.org] [thoughtfulfinance.com] [finance.yahoo.com] [fred.stlouisfed.org] [thoughtfulfinance.com] [finance.yahoo.com]
🤖 The mathematical formula for the 2s/10s yield curve % is:😎 The format is not easily readable in the phone app. Can you rewrite the formulas using ASCII characters. Pseudo programming language code is OK
$$2s/10s\ yield\ curve\ % = \frac{10-year\ bond\ yield – 2-year\ bond\ yield}{2-year\ bond\ yield} \times 100$$
An example of the calculation using the most recent 2-year and 10-year bond yields as of August 23, 2023 is:
$$2s/10s\ yield\ curve\ % = \frac{4.251 – 4.943}{4.943} \times 100$$
$$2s/10s\ yield\ curve\ % = -14.01 %$$
The negative value indicates that the 2-year bond has a higher yield than the 10-year bond, which is a sign of an inverted yield curve.
The source of the bond yields is U.S. Treasury Department [www.investing.com] [www.investing.com]
🤖 I’m sorry that the format is not easily readable in the phone app. I will rewrite the formulas using ASCII characters. Pseudo programming language code is OK.
The mathematical formula for the 2s/10s yield curve % is:
2s/10s_yield_curve_percent = ((10_year_bond_yield – 2_year_bond_yield) / 2_year_bond_yield) * 100
An example of the calculation using the most recent 2-year and 10-year bond yields as of August 23, 2023 is:
2s/10s_yield_curve_percent = ((4.251 – 4.943) / 4.943) * 100
2s/10s_yield_curve_percent = -14.01
The negative value indicates that the 2-year bond has a higher yield than the 10-year bond, which is a sign of an inverted yield curve.
The source of the bond yields is [U.S. Treasury Department].
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