2 ms·
The 10-2 is the better predictor and the more-often cited. Confusing why they used 10y-3m here
by hammock 4y ago
The 10-2 is the better predictor and the more-often cited. Confusing why they used 10y-3m here
- pterhx 4y agoThis is probably because the economist who first looked into relationship between the yield curve and recessions used 10y-3m [0]. His reasoning is that the 3m gives a better outlook of the conditions happening at the moment than the 2y. [0] https://www.npr.org/transcripts/1092678307 https://www.npr.org/transcripts/1092678307