Yield Curve Inversion - Why it is important?

What is YTM?
• What is YTM? | Basic C...
This video provides an explanation of what an inverted yield curve is and why it is significant in the world of finance and economics. The video begins by defining what a yield curve is, and how it represents the relationship between the interest rates of different types of bonds with varying maturity dates.
The video then explains what an inverted yield curve is, which occurs when the interest rates of shorter-term bonds are higher than those of longer-term bonds. The video highlights that this is an uncommon occurrence and tends to happen when investors anticipate a potential economic downturn.
The video goes on to explain why an inverted yield curve is important, emphasizing that it can be a leading indicator of an economic recession. The video discusses how an inverted yield curve can impact various sectors of the economy, including the housing market, employment, and stock market.
In addition, the video explores the historical instances of inverted yield curves and the corresponding economic events that followed. The video highlights that an inverted yield curve is not a guarantee of an economic downturn, but rather a warning sign that investors and policymakers should take into consideration when making decisions.
00:00 Introduction
00:54 News about Yield curve inversion
01:17 What is Yield?
02:29 What is an yield curve?
06:34 Inversion of the yield curve
09:04 Why does the yield curve get inverted?
17:54 Negative yield spreads in Indian bond markets
Complete Fundamental Stock Analysis Tool - Stock-o-meter:
investyadnya.in/stock-o-meter
Research Based Ready-made Model Portfolios:
investyadnya.in/model-portfolios
Comprehensive Mutual Fund Reviews:
investyadnya.in/fund-o-meter
Yadnya Books and eBooks now available:
On Amazon - amzn.to/2XKtlks
On our website - investyadnya.in/books
Find us on Social Media and stay connected:
Blog - blog.investyadnya.in
Telegram - t.me/InvestYadnya
Facebook Page - / investyadnya
Facebook Group - goo.gl/y57Qcr
Twitter - / investyadnya
LinkedIn - / investyadnya
#InvestYadnya #YIA
LEGAL DISCLAIMER:
Use of this information is at the user's own risk. The Company and its directors, associates and employees will not be liable for any loss or liability incurred to the user due to investments made or decisions taken based on the information provided herein. The investment discussed or views expressed herein may not be suitable for all investors. The users should rely on their own research and analysis and should consult their investment advisors to determine the merit, risks and suitability of recommendation. Past performance is not a guarantee for future performance or future results. Information herein is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The images used may be copyright of the company or third party. As a condition to using the services, the user agrees to the terms of use of the website and the services.
DISCLOSURES UNDER SEBI (RESEARCH ANALYST) REGULATIONS, 2014:
Yadnya Academy Pvt. Ltd. (InvestYadnya) is registered with SEBI under SEBI (Research Analyst) Regulations, 2014 with registration no. INH000008349.
Disclosure with regard to ownership and material conflicts of interest
1. Neither Research Analyst nor the entity nor his associates or relatives have any financial interest in the subject Company;
2. Neither Research Analyst nor the entity nor its associates or relatives have actual / beneficial ownership of one per cent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report or date of public appearance;
3. Neither Research Analyst nor the entity nor its associates or his relatives have any other material conflict of interest at the time of publication of the research report or at the time of public appearance.
Disclosure with regard to receipt of Compensation
1. The Research Entity and its associates have not received compensation from the subject company in the past twelve months.
2. The subject company is not or was not a client during the twelve months preceding the date of recommendation.

[@slimshady9084]

Superb content sir... Everybody is talking about yield curve inversion.. but nobody else has shown it with historical context of indian economy.... Superb research sir

[@ramyasri6093]

Totally agree

[@arunsannake1911]

Thank you Gaurav sir for making fundas clear on yield curve inversion.

[@civilshort13]

Super explained. My time not wasted after saw this video. Thank you so much. May i request you this types of economic topic teach regularly.

[@sameeratkare6381]

Appreciated! It's a difficult topic and good effort to explain it in plain language.

[@ritvikmaurya2986]

Insightful and direct

[@ashishpandey9136]

Superb and simple explanation

[@nehalkhandelia124]

Being a CA Final Student I can understand how superbly You have explained succhaaa complex concept! Excellent explanation🙌❤️

[@gprocky2010]

Bahut shandar. Simplifying such complex topic

[@AbhishekGupta-zr1ms]

Excellent Thanks for the detailed video

[@shivasingh7758]

बहुत सरलता से समझाया आपने 👌

[@samwise8333]

Thanks sir for sharing your knowledge!!

[@pavan410]

Gaurav sir@ best in the business. Very lucid and simple explanation. All the videos of Yadnya are well researched and content is very good.

[@kaustubh_hajare]

Very very informative video

[@domingovaz8442]

Very nicely explained. Thank you sir!

[@mohanlalgupta3029]

Superb content sir...thank you so much

[@rgrajput71]

Thank you so much. Great learning

[@shubhamkhattry3335]

Thank u sir for explanation of yield curve inversion...

[@YogeshvsYT]

Very informative video on yield curve 👍🏽

[@ChinmayDhake]

Great explanation sir, thanks a lot!!!

[@dineshkm7832]

Superb content sir.

[@Ravindraacharya]

Very informative thank you so much🙏

[@samkatoch6521]

Informative video

[@nawneetpatel]

Thank you sir for this wonderful content.🙏🙏

[@nabeelyahiya]

Superb explanation❤

[@NandKishor-iy5ph]

Thanks

[@abhinav05252]

Specially like such videos of yours. Well researched and well explained

[@rajbabbarsinhrathva3851]

New concept today 🙌

[@kapilgupta3776]

Very well explained. ...... Thank you

[@hmurugesh]

Well explained

[@shovinamanurag2861]

Thank you for the superb content. Keep it up.

[@rajeshsurani5924]

Very good explanation sir

[@aniketraje4430]

@ Gaurav: Difficult topic very well explained.

[@tushardhingra29]

great sir thankyou and please continue it

[@spradhan5410]

Very insightful but also worrying !

[@shashikantbhardwaj9702]

Well explained sir

[@AK-fn5hu]

Great

[@divyaalok5538]

Awesome

[@tripathi26]

Good content 👍

[@ankityadav_892]

Thank u so much 😊

[@tcglobalrathi5223]

Mazza aaya gaya Really ........Saurabh Jhawar bikaner

[@nitikbadjatya]

Amazing ❤sir

[@ujjawalkumar8030]

Nice

[@manovdas7572]

Thank you sir for the superb concept, can you please explain why if fed is increasing interest rates, why other countries also increases interest rates. What happens if other countries doesn't increase interest rates?

[@saju3000]

Higher demand for longer term bond ->rise in bond price-> lower yeild due to higher price and lower demand for short term bond.. falling bond price due to lower demand -> higher yield due to lower bond price

[@kaizenplayz4632]

sir when is session for model portfolio subs?

[@ashmait]

so what should investors do when there is inverted yield curve? should we invest for short term or long term?

[@sarthak241989]

I had invested in short term debt fund and corporate debt fund few years back. Is it time to sell them?

[@funkyjuggler]

I have 1 question ❓⁉️ if people are waiting for next month as sure shot interest rates are rising, but arent they missing out on that 1 month's return? Coz anyways they were going to buy short term( one year bond), so lower 12 months return wud approximately be equal or even more than a higher 11 month return. Please explain if you understood my question. Thanks

[@Same.time4530]

For the first time I feel confused especially when our beloved Gaurav sir teaching 😅

[@AS-mc8sl]

So you're saying that when recession is expected and rates are likely to decline, they do so for the short end and not long. I think you need to go back and do further research

[@gadjodilo22]

halfway through the video: 1st feedback do consider that there are people with different learning patterns. Visual, auditive and kinesthetic. 90%of the info is oral and said predominately vague manner as it's not simplified. your videos can reach out to more people if you work with a communications person. it's difficult for me to follow what you are saying. Also, there are loads of breaks in your logic flow, so many filler sentences that are not required. Instead of using hand gestures to explain (which is vague) you can use infographics or written slides. As a person who is sharing info if you keep saying that the concepts are complicated then you are defeating the purpose of your explanation. instead of re confirming that its complicated you can work on how its can be simplified. and i believe that it can be simplified. cause concepts are logical and based on relationships and not multiple variables. reality is based on multiple variables perhaps not concepts.

[@sylvesterfrancis6801]

Very poor explaining skills sir. Sorry to say. Your fumbling too much and can’t sight appropriate examples. Anyway I am following your channel and sharing it too..

[@patelsagar6003]

Sorry but it's enough to understand the concept. If you following this channel and parimal ade, then nothing wrong in this. Do you know who is bahubali?

[@ujjawalkumar8030]

Bhai iske liye tumhe thodi economic ko knowledge bhi chahiye

[@samwise8333]

Thanks sir for sharing your knowledge!!

[@anantkr_trader-investor]

Thanks