Visit the US Treasury Department's website and find current data on the US Treasury yield curve by following the following sequence of links:
Resource Center > Data and Charts Center > Daily Treasury Yield Curve Rates.
(a) Identify the date on which you accessed the data.
(b) What are the yields on Treasury bonds with the following time to maturity: 3 months. 6 months, 1 year, 10 years, and 30 years?
(c) Plot the current US Treasury yield curve either by hand or using Excel or a computer graphing utility.
(d) Use the liquidity preference theory to interpret the current yield curve.
Does it appear that the market expects a recession any time soon? What does the yield curve tell you about long-run inflation expectations?