Courtesy of Mish.
Several readers asked me to comment on the possibility of a yield cure inversion.
An inversion occurs when shorter term rates have a higher yield than longer dated rates. Typically this is a strong recession warning.
Let’s start with a look at a couple of yield curve charts.
Yield Curve Monthly
Judging from the above chart I see little reason to believe there will be any inversion at the long end of the curve or between the long end of the curve and the short end of the curve.
Although yield curve inversions signal recession, yields are too low for the curve to invert.
Yield Curve 3-Months to 5-Years
