The spread between the 2-year and 10-year German bund yields has inverted to levels not seen for thirty years. The gap reached -27 bps Thursday, the widest inversion since October 1992. On Friday that spread narrowed somewhat to -20.1 bps. An inverted yield curve is an interest rate environment in which long-term bonds have a lower yield than short-term ones and often considered a predictor of economic recession. German Bond Snapshot Nov 25 2022 Germany is facing severe head winds with … Continue reading “Recession Fears Push German Yield Curve to Deepest Inversion Since 1992”
The German economy is faltering as we have seen with PMI and sentiment. Brexit and trade wars helped Germany Q2 preliminary GDP come in negative as expected triggering further selling in the German DAX and world stockmarkets already down after a big miss in Chinese growth.