Originally Posted by
3EngineTaxi
Treasury bond yields inverted, with 2 year bonds paying more than 10 year bonds. Apparently, in modern history, this usually precedes a recession in the following 1-2 years or so.
I’m no expert, and I’m sure someone else who knows more can chime in.
My investment advisor and the Secretary of Commerce both stated the yield curve inversion is 1/100 of one percent. (Say 2.00% vs. 1.99%). This is hardly the inversions they have seen that leads to recession.
Yet the news media has picked up on this and are screaming recession, recession, recession. Remember blood and guts sells newspapers, as the old adage goes.
The Fed most likely will cut overnight rates when they meet next. This will bring the 2 year rate back down below the 10 year rate. The inversion will go away. The media will have to find something else to scream about.