December 2020 Yield Curve: Long-Term Rates Still Recovering
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The yield curve looks pretty good. Long-term rates still are recovering.
The expected date of the first short-term rate hike also appears to be coming closer. This all seems like good news to me. All in all, pretty good monetary management for the COVID-19 recession, I think.
Euro
Dollar Yield Curve Chart
Dollar Yield Curve Chart
It seems to me that a short position in early 2023 Eurodollar contracts has a nice risk/reward balance. Not much room for downside (declining interest rates), but quite a bit of room to run higher (higher interest rates).
Expected Date Of Interest Rate Low Point