Not all yield curves are created equal. Here’s the one Bank of America says to watch most closely for signs of the next recession.
|08/25/2019||Posted by BusinessMediaguide.Com under General World News||
- Strategists at the Bank of America Merrill Lynch argue that the slope at the front end of the yield curve is the most important area to watch.
- They say this is because it does a solid job of indicating future GDP growth.
- The strategists’ key measure is the spread between the three-month Treasury rate one year forward and the spot three-month rate, which has been inverted since March.
- If the Fed continues to ease, this could push this part of the yield curve back into positive territory, Bank of America said.
- on Markets Insider.