YC3MO and YC2YR Yield Curve Daily Charts; 3-Month to 10-Year Yield Spread Inverts First time Since October 2007; 2-Year to 10-Year Yield Spread at 12 Bips a Whisker from Inversion

The 3-month to 10-year yield spread goes negative at -0.02 bips for the first times since October 2007 when the stock market printed a multi-year top. The 3-month note yield is at 2.46% and the 10-year note is at 2.44%.

The 2-10 spread is at 12 to 13 bips with the 2-year yield at 2.32%. The 2-10 spread dropped to 9 bips in December a hair from inversion at the zero line. Analysts watch the inversions occurring in the various yield curve derivatives since they forecast an economic recession in the months ahead. A pullback in the stock market accompanies a recession.

The majority of Wall Street Einstein's say a recession is nowhere in sight and at least 18 months to 2 years into the future if it occurs then. Their thought processes may be impaired from the copious amounts of Fed wine. The recession is likely a lot closer and coming a lot faster than anyone realizes.

For context, the last four inversions predicted the last three recessions, so there was one false reading. The average time that the recession begins after the inversion is 15 months (this is why the Wall Street analysts say a recession is nowhere in sight even with the inversion above). One of the recessions came in 9 months after the inversion while another took 2 years. A big difference compared to the past is that the global central bankers have been pumping all asset prices higher for the last decade. There is no textbook that tells you how this obscene central banker financial experiment ends or how fast it ends. 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.