Attention Economy


Wednesday, October 26, 2022

Yield Curve Inversion and Recession Risk

Another Closely Watched Recession Alarm Is Ringing
https://www.nytimes.com/2022/10/26/business/yield-curve-inversion-recession.html
A so-called inverted yield curve between three-month and 10-year interest rates is considered by Wall Street as a reliable sign of an impending economic slump.

 
My take from July 25, 2022 - Is a Recession Inevitable?:
https://thehill.com/opinion/finance/3572084-is-a-recession-inevitable/
A few recession indicators with a strong historical track record are worth monitoring for incipient signs of a downturn. The 2-10-year segment of the U.S. Treasury yield curve has already inverted, and the 3m-10y segment of the yield curve is expected to invert in the not-too-distant future as the Federal Reserve continues its accelerated rate-hike cycle.