The Most Anticipated Event in History: Inverted Yield Curve

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Well, it has not happened yet but market moguls believe it is close enough for the yield curve to be inverted. That is like saying you almost got a “touchback” in football. Inches matter and either the 10-year U.S. Treasury yield is above the 2-year T-yield or it is not. The 10-year at 2.95 minus the 2-year at 2.83 is still positive. I have seen a touchback and this is no touchback. Relax and do not fight the Fed – they know what they are doing.

Please see the slope of the yield curve on page 35 of the Global Perspectives book.

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