Re:Yield Curve Is More Inverted Than at This Point in Run-Up...
by alehul on Tuesday March 26, 2019 @11:19AM
(#19492638)
If an investor believes that a recession is coming soon, then they'd be willing to receive a lower interest rate in exchange for a secure 10-year return.
The fact that investors are purchasing long-term bonds at these inverted rates is exactly what indicates a possible recession. The lower price is a function of their willingness.
The fact that investors are purchasing long-term bonds at these inverted rates is exactly what indicates a possible recession. The lower price is a function of their willingness.