The dominant economic stories of the past few weeks pertain to the rising rate of inflation, the Fed's efforts to control inflation, the war in Ukraine, the price of commodities (especially oil) and the yield curve. These stories are big, long, complicated and extremely important. They affect every American household and business, especially the businesses that comprise the plastics industry.
It will take a long time before anybody garners a deep understanding of these stories, but for this column I will to attempt to shed a little more light on the discussion of the yield curve.
On the chart I have graphed two yield curves: one from April 1, 2022, and one from exactly one year earlier, April 1, 2021. A yield curve is a snapshot on a given day showing the percentage yields, or interest rates, the purchaser of the underlying Treasury bond or note will be paid at maturity. The yield curve changes a little bit every day. When compared with last year, the yield curve has changed shape and shifted upward. This data is posted daily at treasury.gov.