Two-year tops 10-year: Thoughts on the yield curve inversion
August 14, 2019
An inverted yield curve (long rates below short rates) has been a strong recession predictor in the past, as it signals that investors are concerned about future growth. Much of the yield curve has been inverted throughout the year, but equity investors pay specific attention to the spread between the 10-year and 2-year, as it is seen as the most accurate predictor.