Tuesday, October 11, 2011

Yield Curve Goes Inverted

Ugh.

The so-called Treasury yield curve, adjusted for distortions caused by the Fed’s record low zero to 0.25 percent target interest rate for overnight loans between banks, shows that two-year notes yield 20 basis points, or 0.20 percentage point, less than five-year notes, according to Bank of America Corp. research.

Usually predicts a recession.

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