Monday Sept 19, 2022
Yield on the 2 year T Note is at 3.9%. Yield on the 10 year is 3.6%. An inverted yield curve occurs when short term rates exceed long term rates.
An inverted yield curve usually occurs prior to a recession. Stocks are down again in pre market trading the DJIA is off 270 points. The FED remains way behind the yield curve and willl need a substantial raise this Wednesday, Even at 75-100 bps it will be lagging the real rates.
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