Yield Curve Steepens But Recession Risks Haven't Faded

The yield curve has steepened considerably in the past month. Some think it means recession risk has diminished.

Yield Curve Debate

A longer-term picture will put the steepening in perspective.

10-Year Minus 2-Year Treasury Yield

The yield curve has not inverted this time. But what if it doesn't. There is no universal law that says the yield curve will invert before a recession. Look at Japan for proof.

With so many eyes on the yield curve flattening, perhaps it doesn't.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.