Why everyone’s so hung up on the recession red flag called ‘the yield curve’
|03/25/2019||Posted by BusinessMediaguide.Com under General World News||
- The spread between three-month and 10-year US Treasury yields has inverted for the first time since 2007.
- When that happens, it’s a bad sign for investors: Inversions preceded all nine US recessions since 1955.
The bond market flashed a warning on Friday, sending stocks plummeting as investors fretted that this was surely a sign of recession.
When the interest yield on the 10-year US Treasury bond becomes the same or lower as the two-year bond, recessions have often followed.
Ten-year Treasury yields, which were already at a one-year low, declined further on Friday. This time, they crossed below the yield of the three-month read more >>>