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=Ng4eIn this other video there is some correlation between FED rates, stock market, recession and even Bitcoin.
https://twitter.com/ColinTCrypto/status/1639293045383262210?s=20Finally, at last picture we see the "Periods When To Make Money", created at 1892. (2023 bottom year)
#FED #rates #recession #bonds
Published at
2023-03-26 15:31:39Event JSON
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"content": "The Risk of Curve Yield Inversion\n(small thread 🧵)\n\nA yield curve is simply a line that connects the yields, or interest rates, of bonds that have different maturity dates. \nShort-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.\n\nA 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.\n\nLook at this link below:\nhttps://fred.stlouisfed.org/graph/?g=Ng4e\n\nIn this other video there is some correlation between FED rates, stock market, recession and even Bitcoin.\nhttps://twitter.com/ColinTCrypto/status/1639293045383262210?s=20\n\nFinally, at last picture we see the \"Periods When To Make Money\", created at 1892. (2023 bottom year)\n\n#FED #rates #recession #bonds\n\nhttps://void.cat/d/8p5YHTCdRNhGzcvVpd4zWb.webp\n\nhttps://void.cat/d/JRzLwm2YAkpJmn3LAj4Uj6.webp",
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