Do you think the yield curve predicts economic performance or is the Fed’s QE ruining this metric?

Sharing is Caring!

by AlexPitti

The yield curve is flattening as the difference between the 10 year treasury and 2 year yield is 44 basis points. That’s not enough to worry about a recession now, but some analysts are extrapolating continued flattening to predict a recession is coming in 1-2 years. The Fed is flattening the curve by raising rates which pushes the near term maturity yields higher. The long yields are staying relatively stagnant recently because economic growth is disappointing. Rate Hike Cycle To End In 2020?

See also  Why You Might Have To Eat Bugs If The World Economic Forum Gets Its Way
See also  A different way to think about the Evergrande collapse

Weak Hard Data In Europe



Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.