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Yield Curve Inversion: The End Is Near, Or Is It?

Apr. 01, 2022 7:07 PM ET1 Comment
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StockBros Research


  • The inversion of the 2-year to 10-year spread is seen as a harbinger for recessions.
  • An inverted yield curve is an unusual event because logically investors should want to receive a higher return on long-term investments than on short-term ones.
  • Unlike the 2-10 spread which has been wrong twice, a 3-month and 10-year inversion has never been wrong so far.

Grizzly bear approaching in snow on winter day

wanderluster/E+ via Getty Images

There's currently a lot of commotion regarding the yield curve. With large investors focusing on the inversion of the 2-year and 10-year government bond spreads, it's worth discussing the importance of this event because the yield curve

Yield Curve

Wikipedia Yield Curve

Fed Funds Rate January 2023

Yahoo Finance

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StockBros Research profile picture
Two bros that talk about stocks, mainly GARP (growth at a reasonable price) stocks, but we look for opportunities everywhere. We don't have a specified time horizon. We invest in a stock for as long as our thesis holds true, and get out when the facts change. In addition, we've developed market-beating algorithms with python that help us find attractive investment opportunities within our own portfolios.Website: www.stockbrosresearch.comTwitter: @StockBrosTrades

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