What If The Yield Curve Inverts?
According to investopedia.com an inverted yield curve signals a recession. Although the yield curve is currently not inverted, it is becoming more flat. As you can see from this data set, the spread between the 1 month note and the 10 year note narrowed from 156 basis points to 120 basis points over the course of the past month. (ie. on May 3, 2005 the 10 year was yielding 4.21% and the 1 month was yielding 2.65% for a difference of 156 basis points. On May 31, 2005 the 10 year was yielding 4.00% and the 1 month was at 2.8%, for a difference of 120 basis points.)
Given the rally in the bond market today, the curve likely flattened even more.
Given the rally in the bond market today, the curve likely flattened even more.
posted by Little_Silvered at 6:42 PM
1 Comments:
Hello Little Silvered, been looking for the latest info on real estate note and found What If The Yield Curve Inverts?. Though not exactly what I was searching for, it did get my attention. Interesting post, thanks for a great read.
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