Inverted Yield Curve

Everyone is down playing this, the inversion is getting worse. Here we sit with massive deficits, an inverted yield curve.


My gosh what a mess we have.

Tax the rich
 
Is it not a thing to be grateful for? If long rates were higher then wouldn't financing those deficits be rather more difficult?

Apologies if I am missing something.
 
Well we don't get CNBC in the UK. I realise that I am probably missing something, so please explain why things would be better for you lot if all else were unchanged and the yield curve spontaneously steepened 100bps 2s-30s.
 
NOVEMBER 13.

The yield curve became more inverted this week, with the negative differential between the 3-month and the 10-year at -49 basis points and a -76 basis point differential between the 10-year and the Feds fund rate. According to a Fed paper, that level of an inversion suggests there is now an over 40% probability of recession next year. This same model only predicted a 50% chance of recession in 2000, and as the paper authors acknowledge, the model probably understates risk in recent decades.


http://usmarket.seekingalpha.com/article/20452
 
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