Inverted Yield Curve
There has been a lot of chatter on CNBC of late regarding what they call an inverted yield curve. They define the yield curve in terms of what the 2 year Treasury note yields as compared to the yield on the 10 year Treasury note. This is a figment of their imagination, as are their references to how the present day inverted curve compares to previous instances of inverted curves. The critical flaw in their stance is how the curve is defined. Historically the yield curve was the comparison in yield between the 3 month T-bill and the 30 year Treasury bond. That yield right now is 4.08% and 4.54% respectively, not even flat much less inverted.
While it is true that the yield on the 2 and 10 year are flat to slightly inverted, that is all that is. No economic predictions can be made on false comparisons.
While it is true that the yield on the 2 and 10 year are flat to slightly inverted, that is all that is. No economic predictions can be made on false comparisons.
