U.S. yield curve inverts further
- 5 years ago
The gap between the two-year and 30-year U.S. Treasury yields, a closely-followed recession indicator, inverted further on Wednesday.
After inverting for the first time on August 14th, the spread widened further to six-point-two basis points, mainly on concerns about the escalating U.S.-China trade war.
The yield curve is considered inverted when long-term bonds see their returns fall below those of short-term bonds.
According to Credit Suisse, the last five inverted yield curves over the past 50 years all led to recessions that happened an average of 22 months following the first inversion.
After inverting for the first time on August 14th, the spread widened further to six-point-two basis points, mainly on concerns about the escalating U.S.-China trade war.
The yield curve is considered inverted when long-term bonds see their returns fall below those of short-term bonds.
According to Credit Suisse, the last five inverted yield curves over the past 50 years all led to recessions that happened an average of 22 months following the first inversion.