An Inversion Is Not Unthinkable
Not only is a yield curve inversion both conceivable and likely in the present circumstances, we can map how it will unfold from past inversions. The curve’s maximum inversion will occur when the federal funds rate peaks. Two-year notes will yield less than federal funds and the ten-year note may very well trade under the two-year note to complete the inversion across the entire yield curve.
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Commentaries — December 13, 2005
An Inversion Is Not Unthinkable Not only is a yield curve inversion both conceivable and likely in the present circumstances, we can map how it will unfold from past inversions. The curve’s maximum inversion will occur when the federal funds rate peaks. Two-year notes will yield less than federal funds and the ten-year note may… Continue reading Untitled