YC2YR Treasury Yield Curve 2-10 Spread Weekly Chart; US Yield Curve Inverts First Time Since 2007

The 2-10 spread in US Treasury yields finally invert joining other spreads that have been inverted for months. Interestingly, the UK yield curve inverted 15 minutes before the US yield curve inversion. The 10-year printed at 1.61% to 1.62% yield while the 2-year yield was at 1.63% a 2 basis point, or bip, inversion. The yield curve inversion is a harbinger of recession for the months ahead. This is evidenced back in 2006 for that inversion.

Stocks peaked on October 2007 as the inversion faded and the spread increased. The stock market began crashing in the back half of 2008 into early 2009 when the Federal Reserve stepped in, Helicopter Ben, to save equities protecting the wealthy elite class that own large stock portfolios.

The big question mark is how one decade of central banker largess impacts the yield curve inversion? The inversion occurred each time prior to the last seven recessions. Interestingly, instead of months ahead, could the recession already be sitting on the front porch, tapping on the living room window, and no one realizes it yet? The start of recessions are never exactly identified until years later when all economic data is revised umpteen times. The worries over recession send the stock market lower. on 8/14/19 This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.