Updating yield curve based on bond trades
Quantitative Finance
Level
2
If you notice that bonds with short term maturities have decreasing prices and bonds with long term maturity have increasing prices, what is his belief held by the market about the yield curve?
Market believes that near term yield curve was too high and long term yield curve was too low
Market believes that near term yield curve was too low and long term yield curve was too high
The market believes that the yield curve was too low
The market believes that the yield curve was too high
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