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US yield curve inversion, the recession indicator, is its deepest in 40+ years
Powell's return to more hawkish triggered bond marekt moves:
- the 2 year UST yield rose more than 10 basis points, above 5%, not seen since 2006
- the 10 year is under 4%
- this meant the spread between the 2s and 10s, at more than 100bp, hit its deepest inversion since September 1981
The yield curve "inverts" when yields on shorter-maturity notes exceed that of longer-dated ones. It suggests expctations are high for even more restrive monetary policy:
Posted: Mar 7 2023, 23:35
Author Name: forexlive
Views: 082170
