Two-Year Treasury Yield Highest Since 2007, Everything Inverted Over 1 Year




The curve has been inverted in places for over a year. This is a recession signal and I believe the economy went into recession in May. 

The Fed is merrily hiking away and is likely to keep doing so until it breaks something big time. The Fed will hike 75 basis points tomorrow and the market thinks another 75 basis points is coming in November. 

If so, it is doubtful the markets will like it much. 

Author(s): Mike Shedlock

Publication Date: 20 Sept 2022

Publication Site: Mish Talk