Financial Times FT.com

Short View: Yield curves

By Aline van Duyn, US markets editor

Published: November 5 2009 18:10 | Last updated: November 5 2009 18:10

The message from US and European central banks is loud and clear: don’t expect official interest rates to budge anytime soon. Markets believe it. Futures are pricing in official US interest rates of close to zero for at least a further six months.

That does not, of course, mean that interest costs will not rise. Most companies, investors and individuals borrow at rates higher than the central banks’ official levels, and these have been edging up.

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