Finance & Fury Podcast

Welcome to Finance and Fury, the Say What Wednesday edition. This week’s question is continuing on the from Raj in last week’s episode. “I would love to have an overview of how certain economic factors are interlinked and impact economies” This episode look at Yield curves and bond prices and touch on fiscal deficits Last week – looked at the other factors – mainly CB policies including interest rates, inflation and the monetary supply – but can’t talk about these without the flow on effects that they have on what is known as the yield curve The yield curve for government bonds is an important indicator in financial markets - helps to determine how actual and expected changes in the policy interest rate (the cash rate), along with changes in other monetary policy tools, feed through to a broad range of interest rates in the economy – hence can have affects on the entities that comprise an economy The basics for bonds - A bond is a loan made by an investor to a borrower for a set period of time in return fo