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www.yieldcurve.pro Quizdle 2026-03-12 🟩🟩🟥🟩🟩 4/5Use Cases
2026-03-13 · 5 questions · New quiz daily
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1. In early March 2026, the Fed signals a pause in rate cuts after inflation remains sticky at 3.2%, while consensus expects no further cuts through Q2 2026. The 2Y yield is 3.85% and the 10Y yield is 4.10%. Which regime characterizes the current yield curve environment?
2. A trader holds a 5-year bullet portfolio with a dollar duration of 4.25. If the yield curve shifts up 40 basis points in parallel, what is the approximate mark-to-market loss on a $10 million notional position?
3. Over the past 18 months, the US 10Y Treasury–corporate spread has tightened from 185 bps to 120 bps while absolute 10Y yields rose from 3.65% to 4.10%. Which statement best explains the observed credit spread compression?
4. On August 5, 2024, following a weaker-than-expected employment report, the 10Y Treasury yield fell from approximately 4.00% to 3.84% in a single session. This event marked the beginning of the Fed's pivot to rate-cut expectations. Approximately what was the 10Y Treasury yield at that date before the decline?
5. Under the expectations hypothesis of the term structure, if the current 1Y forward rate starting in year 4 is 3.75% and the current 1-year spot rate is 3.25%, what does this imply about the market's expectations for the 5-year spot rate?