Yield Curve Inversion

Robert Rubin, Treasury Secretary under former President Bill Clinton, wants the U.S. government to raise taxes to address the country’s federal deficit. The suggestion was likely to be very unpopular with voters and politicians alike in a presidential election year. But Rubin warns of “...

The U.S. has a debt problem. The relatively peaceful globalized prosperity, which lasted for decades, might end.  In such an increasingly fragmented environment, the demand for U.S. government debt is slowing while its size keeps growing. Per Economics 101, reduced demand typically drives up prices...

On Wednesday (June 28), the U.S. Treasury yield curve inverted further, with the yield on the two-year note exceeding the yield on the 10-year note by a full percentage point. This is the biggest level of inversion since March 9, when a slew of regional bank failures disrupted the Treasury yield...

Ark Invest founder and CEO Cathie Wood believes the bond market is “demanding” the Federal Reserve must relax its hawkish policy in the wake of SVB Financial Group’s (Silicon Valley Bank) failure (NASDAQ: SIVB). She also stated the regional bank’s...

If you’ve picked up any financial news in the recent week you probably saw headlines about the yield curve inverting and this being a recession indicator. But then nothing really explaining what that is, why it happens or what is causing it. Well let’s break it down and do just that....