Understanding US Treasury Yields in a World of Negative Yields

From Europe to Asia, many countries currently have negative yields, with Germany, France and Japan being the dominant forces among them. In this environment, an individual investor, money manager, and banks require an understanding of the level and changes of short-term yields set by central banks, relative to yields on longer term government bonds, that is, the slope of the yield curve. It is also imperative to know what economic factors and central bank decisions might affect the levels and slope of the yield curve.