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If an investor believes that a recession is coming soon, then they'd be willing to receive a lower interest rate in exchange for a secure 10-year return. The f
by alehul 8y ago
If an investor believes that a recession is coming soon, then they'd be willing to receive a lower interest rate in exchange for a secure 10-year return.
The fact that investors are purchasing long-term bonds at these inverted rates is exactly what indicates a possible recession. The lower price is a function of their willingness.