Re:U.S. Treasury Yield Curve Inverts for First Time Since 2007
by WillPostForFood on Friday March 22, 2019 @05:31PM
(#19467171)
Interestingly, the US has never had a recession that wasn't preceded by an inverted yield curve, but not every yield curve inversion has been followed by a recession.
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Re:U.S. Treasury Yield Curve Inverts for First Time Since 2007
by nickles on Friday March 22, 2019 @05:44PM
(#19467272)
> the US has never had a recession that wasn’t preceded by an inverted yield curve
This is incorrect. Most recessions in the post WW2 period have been preceded by an inversion of the 3m/10y UST curve, but it did not precede a few recessions in the USA during the first half of the 20th century.
[0] http://bonddad.blogspot.com/2011/07/yield-curve-and-pre-ww2-...
Re:U.S. Treasury Yield Curve Inverts for First Time Since 2007
by hire_charts on Friday March 22, 2019 @05:36PM
(#19467210)
Can't you essentially fabricate this statistic by controlling for the amount of time that counts as "before", assuming the inverted curves happen more often than recessions?
Re:U.S. Treasury Yield Curve Inverts for First Time Since 2007
by mannykannot on Friday March 22, 2019 @08:32PM
(#19468223)
I am guessing that "before" means that the inversion persisted until the economy was technically in recession.
Re:U.S. Treasury Yield Curve Inverts for First Time Since 2007
by tfehring on Saturday March 23, 2019 @12:23AM
(#19469058)
Not quite - see https://fred.stlouisfed.org/series/T10Y3M for reference. The grey areas are recessions, and values below 0 are inversions.
To address the GP’s point, the relationship could be fabricated, but the data don’t indicate that that’s happening.