You mentioned an inversion of the bond yield rate, presaging a recession? I don’t get it.

You mentioned an inversion of the bond yield rate, presaging a recession? I don’t get it.

Owner Asked on June 19, 2019 in Real Estate.
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Bond rates have dropped like a stone this month, yet only last November all pundits predicted record new interest rates and thus high yields. Currently rates have dropped, and the 3-month rate is inverting to the ten-year bond rate, which is an inversion. Some say that an inversion presages a recession. Whether or not this means a recession now is still too early to tell. (Look up David Rosenberg – who believes we are in a recession already.)

Guru Answered on June 19, 2019.
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