Over the weekend the US bond yield curve inverted briefly for the first time in 16 years since the Great Recession in 2008.
Steve Cortes warned The War Room audience on Monday that there was a US recession every time the rate yield curves inverted since 1955. Every time except one!
On Thursday the 2-year and 10-year Treasury yields inverted again during trading. Things are not looking good for this summer
CNBC reported:
The 2-year and 10-year Treasury yields inverted for the first time since 2019 on Thursday, sending a possible warning signal that a recession could be on the horizon.
The bond market phenomenon means the rate of the 2-year note is now higher than the 10-year note yield.
This part of the yield curve is the most closely watched and typically given the most credence by investors that the economy could be heading for a downturn when it inverts. The 2-year to 10-year spread was last in negative territory in 2019, before pandemic lockdowns sent the global economy into a steep recession in early 2020.
The yield on the 10-year Treasury fell to 2.331%, while the yield on the 2-year Treasury was at 2.337% at one point in late trading Thursday. After a brief inversion, both yields were basically trading at the 2.34% level in the latest trading.
The post CNBC: Inverted Yield Curve Shows Recession Likely Around the Corner appeared first on The Gateway Pundit.
