When shorter maturity interest rates exceed longer maturity interest rates, the yield curve is called “inverted”. Executives should not sleep easily! The last six U.S. recessions going back to the 1970s have been preceded by a yield curve inversion. It is also noteworthy that the U.S. yield curve does not give many false recession signals. A yield curve inversion is flat out the best single indicator of U.S. slowdown I know of.
Like this content? Why not share it?
There Are No Comments
Click to Add the First »
Click to Add the First »