Inflation is out of control, home sales have fallen for 12 months in a row, large corporations all over America are conducting mass layoffs, and hunger is spreading like wildfire as economic conditions rapidly deteriorate. If this is “fine”, I would hate to see what “bad” would look like.
Virtually everything that normally occurs during the early stages of a major economic downturn is happening right now, and that includes an inversion of Treasury yields…
On Tuesday, the difference in the yield on 2-year and 10-year Treasury notes further inverted, with the yield on the 10-year falling 103 basis points, or 1.03 percentage points, below the yield on the 2-year yield. This dynamic has preceded each of the last eight U.S. recessions.
