Inverted Yield Curve
There has been much talks about the bond yield inversion, a signal that is widely believed to indicate upcoming recession. Bond yields have been declining for the past 40 years and now both long-term and short-term yields are converging on each other. With long-term yield driven by market and short-term yield driven by central bank policy, which now has limited room to manage, can yield curve inversion still fairly reflect recession risks? Will the yield inversion be a part new normal? ….click!!
