Inverted Yield Curve looks to be forming ... ... what should we do?
There is much talk about yield curve inversions and their correlation with recessions. the news painted a mixed response to the inverted yield curve Yield curve extracted from Reuters From Investopedia: An inverted yield curve describes the unusual drop of yields on longer-term debt below yields on the short-term debt of the same credit quality. Sometimes referred to as a negative yield curve, the inverted curve has proven in the past to be a relatively reliable lead indicator of a recession. The yield curve can be expressed using a percentage of the 2-year and 10-year treasury yield rates or the net difference between the 2 year and 10 years treasure rates. From marketwatch.com - note that a recession usually follows the inversion An inversion in these particular points has correctly predicted a recession with a lead time of between eight months and two years in each of the last eight recessions . The average time between the formation of the inverted...