3-year yield is above 5-year yield now!
What does this mean?
This means that the investors have no confidence in the short-term US economic growth and the US has no money to repay its shorter-term debt which has resulted in the inverted yield curve.
Although the mainstream indicator is the 2-year and 10-year yield curves which have not inverted yet, these shorter-term inverted yield curves may be a harbinger of a recession looming in the future.
Please watch the yield curve closely.
1 comment:
A 2-10 year inverted yield curve usually presages a recession in US economic history.
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