Recession Fears Push German Yield Curve to Deepest Inversion Since 1992

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”

Fed’s Bullard Says Yield Curve More Normal Bullish For US Economy

A dovish St. Louis Fed President Bullard speaking in Louisville said the yield curve is in more normal state which could be bullish for the economy in 2020. Risks remain but Fed cuts this year may prompy growth