Inverted Yield Curve: This Time, It's a Non-Event

by: TickerSense

Last December we noted how, unlike prior periods where the yield curve inverted (negative spread between yield on ten-year and three-month treasuries), the media was paying close attention.

Back then, it seemed as though every day one of the major newspapers ran a story detailing the negative economic scenarios implied by an inverted yield curve. This is illustrated in the chart below, as the occurrences of the term 'yield curve' in the The New York Times and The Wall Street Journal showed a large spike just before the curve became inverted.

Today, we once again find ourselves in a situation where the yield curve has become inverted, but unlike the end of 2005, this time it's being treated as a non-event (click to enlarge):

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