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A lot of the people in Finance are surprisingly superstitious. I had a boss once who would not conduct trades if he saw a totally unrelated bad omen. The treas
by potatofarmer45 8y ago
A lot of the people in Finance are surprisingly superstitious. I had a boss once who would not conduct trades if he saw a totally unrelated bad omen.
The treasury yield curve is a measure of expectations. It's a market marker that is the result of traders and reflects the overall view of the economy.
Having said that, it's also taken on a mythical status where now that it has inverted, people will start planning for a recession which may in turn lead to happening much sooner/if at all. It's a self fulfilling prophecy in a way where the expectation of a recession leads you act in a way that leads to that outcome.