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- Mar 28, 2018
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The gap between the 3-month and 10-year yields vanished on Friday as a surge of buying pushed long-end rates sharply lower. Inversion is widely considered a reliable harbinger of recession in the U.S. The 10-year slipped to as low as 2.439 percent.
This is a big deal because it indicates people see things turning negative in the longer term. When the shirt term yield is higher than the longer term it almost invariably indicates recession right around the corner.
www.bloomberg.com/amp/news/articles/2019-03-22/u-s-treasury-yield-curve-inverts-for-first-time-since-2007