
mBaer Necessities 11/23
The fast and steep rise of interest rates in advanced economies over the last two years has surprised investors and economists reminding us of the need to approach yield curves' analysis with humility. Chart 1 shows the US yield curves since 2010 with the striking "tidal wave" profile of interest rates across all maturities, from short-term rates to the 10-year interest rate, beginning in 2022. Yield curves of other G10 countries follow similar patterns, with the exception of Japan, as the BoJ is keeping its short-term policy rate unchanged in negative territory.