Last week, stock markets finally freaked out about the possibility of a recession in the US. Bond markets have witnessed declining yields and a flattening yield curve for weeks, but stock markets kept their cool. Until the US Treasury yield curve inverted for the first time since 2007. Of course, investors have been debating yield curve inversions all year since different parts of the yield curve have inverted before, but last week, we saw the spread between 10-year and 2-year Treasury yields finally turn negative.
The plot thickens…
The plot thickens…
The plot thickens…
Last week, stock markets finally freaked out about the possibility of a recession in the US. Bond markets have witnessed declining yields and a flattening yield curve for weeks, but stock markets kept their cool. Until the US Treasury yield curve inverted for the first time since 2007. Of course, investors have been debating yield curve inversions all year since different parts of the yield curve have inverted before, but last week, we saw the spread between 10-year and 2-year Treasury yields finally turn negative.