Yield Curve’s the Biggest Fixed Income Story of 2019
The inverted yield curve was the biggest story of 2019 in the bond market. Historically, when long-term bond yields fall below short-term yields, as the 2- and 10-year Treasury yields did in August, recessions have tended to follow, though with wildly varying lead times. Thankfully, the yield curve has normalized since then as the 10-year yield has rallied.
“The recent steepening of the Treasury yield curve is an encouraging sign for the U.S. economy and markets,” said LPL Chief Investment Strategist John Lynch. “Continued calmness in the credit markets suggests this popular recession signal may have given us a
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