5-year and 30-year yields inverted for the first time since 2006 on Monday and Again Today

All the key indicators are showing a tanking economy. Do not ignore these signs. Investors don’t have faith in America right now and who can blame them.

A key part of the Treasury yields inverted once again on Friday, stoking fears that a recession could be in the cards, after jobs data caused short-term rates to jump.

The benchmark 10-year Treasury note was up 10 basis points at 2.426%, and the rate on the 2-year U.S. government bond surged 15 basis points higher to 2.434%.

Yields move inversely to prices and 1 basis point is equal to 0.01%.

Other parts of the yield curve also remained inverted. The yield on the 5-year Treasury surged 14 basis points to 2.564%, while the rate on the 30-year Treasury bond had jumped 7 basis points to 2.516%. 5-year and 30-year yields inverted for the first time since 2006 on Monday.


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We’re nearing a recession, if this always-accurate indicator is right again | CNN Business

New York (CNN Business)The bond market just flashed a warning sign that has correctly predicted almost every recession over the past 60 years: an inversion of the US Treasury note yield curve.

An inverted yield curve is often seen as a signal that investors are more nervous about the immediate future than the longer term, spurring interest rates on short-term bonds to move higher than those paid on long-term bonds.
The curve inverted briefly Tuesday for the first time since September 2019. That shouldn’t be particularly surprising, given how Russia’s invasion of Ukraine — and its economic ramifications — continue to weigh heavily on the global economy.
Treasury notes are essentially a loan to the US government and are generally seen as a safe bet for investors since there is little risk the loan won’t be paid back.

h/t Fair Acres


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