-
The Yield Curve Is About to Uninvert, Is That a Recession Indicator?
The yield curve went through its longest period of inversion ever and is now on the cusp of uninverting. Some say this is a recession trigger. Let’s investigate. What Is an Inversion? In a normal yield curve longer-term Treasuries have higher yields than short-term treasuries. The above chart shows the opposite. Short-term yields are higher than long-term yields. Numbers below zero means inversion. People go on recession watch when yields invert. But the wait can be long. Others say the recession signal is when the yield curve uninverts. Yield curve steepening from an inversion is THE recession signal This is ... (full story)