Re:US Gross Domestic Product, Second Quarter 2022 (Advance E...
by _marlowe_ on Thursday July 28, 2022 @11:53AM
(#32266015)
2-10 spread went through the pre-GFC record of -28 bps a day or two ago.
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Re:US Gross Domestic Product, Second Quarter 2022 (Advance E...
by NovemberWhiskey on Thursday July 28, 2022 @12:56PM
(#32266998)
I'm a little sanguine about the inverted yield curve as a real signal this time around, to be honest.
We're in an environment of very rapidly rising short-term interest rates, specifically as the Fed attempts to try to manage inflation; with back-to-back 75 bps increases. That tends to have a curve flattening effect as the yield curve is nominal; short term yields rise more than longer tenors if the market believes that inflation will decrease as real yields will be higher.