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> They recently announced they would stop doing that. I'm aware. Markets are forward looking. As you can see, yields have dropped precipitously since the annou
by nickles 7y ago
> They recently announced they would stop doing that.
I'm aware. Markets are forward looking. As you can see, yields have dropped precipitously since the announcement, and the curve has flattened. This is consistent with expectations of increased purchases of securities in the tail end of the curve.
- cs702 7y agoYes...and therefore, this recent yield inversion may not be related to growing risk of recession in the US. Maybe it is, maybe it isn't. I don't know. That's why I'm leery of predictions made based solely on the inversion of yields. Things are different this time. That's my point :-)
- nickles 7y ago> this recent yield inversion may not be related to growing risk of recession in the US It's been a reliable signal in the past, but perhaps this time is different. Interestingly, some economists postulate that such an inversion may be somewhat causative of recession, due to increased short term funding costs relative to long term funding costs.
- cs702 7y ago> It's been a reliable signal in the past, but perhaps this time is different. Yes, we're in agreement :-) > Interestingly, some economists postulate that such an inversion may be somewhat causative of recession... That could be true... I don't know.