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monsieurdeivid
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2023-03-26 15:31:39

monsieurdeivid on Nostr: The Risk of Curve Yield Inversion (small thread 🧵) A yield curve is simply a line ...

The Risk of Curve Yield Inversion
(small thread 🧵)

A yield curve is simply a line that connects the yields, or interest rates, of bonds that have different maturity dates.
Short-term bonds, like the 2-year Treasury, usually reflect expectations of future Fed interest rates, while long-term bonds, like the 10-year Treasuries, reflect future inflation rate expectations.

A great indicator that suggests bad times ahead is the Curve Yield Inversion. That arrives when the spread between the 10-year Treasury Bond and the 2-year Treasury Bond is negative. Usually it means a recession, deceleration, crisis or whatever you called it is coming in 1-2 years.

Look at this link below:
https://fred.stlouisfed.org/graph/?g=Ng4e

In this other video there is some correlation between FED rates, stock market, recession and even Bitcoin.
https://twitter.com/ColinTCrypto/status/1639293045383262210?s=20

Finally, at last picture we see the "Periods When To Make Money", created at 1892. (2023 bottom year)

#FED #rates #recession #bonds



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