Tag: inverted yield curve
The Fed has distorted the Treasury landscape, says a Bernstein savant. Without its bond buying, the 10-year would be yielding 3.7%.
A so-so economy, low earnings growth, an un-inverted yield curve, and a stand-pat Fed are part of the mix for a ho-hum year.
The last time that happened was during the financial crisis, Bespoke says.
Shiller, Yardeni, Yellen, and El-Erian trash this feared recession signal as off-base nowadays.
Allianz economist notes decline of yields and worries they might crop up in America.
Then, the 3-month Treasury could dip below the 10-year, and dispel this dreaded recession portent.
The spread between BBB corporates and 10-year Treasuries is shrinking.
In this week’s recession scare, everyone focuses on the 10-year Treasury. But why are yields on T-bills for 12 months and below so high?