Today, gold is rising and EM is rising. On August 14, 2019 the yield on Treasury bonds showed a decline from 1.98% to 1.46%. Anyone who is telling you “don’t panic” or “you can’t time the market” is a complete buffoon and should be ignored. Yield inversion happens when the yield on a longer tenure bond becomes less than the yield for a shorter tenure bond. That is a simple, declarative statement, and yet one that I have not read anywhere this morning. Ex-Credit Suisse chief Tidjane Thiam to launch blank cheque vehicle, BioNTech and Pfizer plan to supply 500m more Covid vaccine doses, Top US banks set for $10bn round of buybacks, Dr Martens owner Permira plans IPO of cult bootmaker, Fading allure of urban life leaves dent on US mortgage bonds. 10 Years vs 2 Years bond spread is 46.3 bp. Central Bank Rate is … A yield inversion typically portends a recession. An inverted yield curve reflects a scenario in which short-term debt instruments have higher yields than long-term instruments of the same credit risk profile. For stock market investors, an inverted yield curve is a sign that an economic recession could be on the way. Although the yield curve of between 1-month and 10-year Treasury rates is inverted, it is only a third of the full yield curve. There's a second derivative there, however. Back in 2017, China’s yield curve inverted -- a move that in a U.S. context would be taken by some as anticipating a downturn. The 3-month US Treasury already inverted versus the … My work is also featured on Real Money, the premium portal of TheStreet.com. The yield curve is inverted any time a longer-duration security trades at a lower yield than a shorter-duration security. From Birch Gold Group. The yield spread is a simple calculation that involves subtracting short-term interest rates from long-term interest rates. That is why shares of those tech titans—and the vast majority of stocks around the globe--are falling sharply today. The inverted yield curve is noteworthy, but more reflective of strangeness in the bond market than an impending recession. The Hong Kong credit rating is AA+, according to Standard & Poor's agency.. Current 5-Years Credit Default Swap quotation is 40.20 … There’s a narrative that we can apply to these movements, so we will tend to focus on it a lot more than is probably warranted by the pure numbers. The Fed cut three times in quick succession in the wake of the 10-year yield’s plunge in Aug/Sept. As Federal Reserve Vice Chairman Richard Clarida said When long-term bond yields are lower than short-term yields, the spread is negative and the yield curve is inverted. Why? An "inverted yield curve" is a financial phenomenon that has historically signaled an approaching recession. Two Men Carrying Zip Ties At Capitol Riot Arrested After Citizen Sleuths ID’d Them Online, China Quits Recycling U.S. Trash As Sustainable Start-Up Makes Strides, Ted Cruz Faces Fierce Backlash: 71% Of Americans Don’t Trust Him To Protect Democracy, Blunt: Impeachment May Be ‘Long-Term Punishment’ For Trump, But There’s ‘No Possibility’ It Will Happen Before He Leaves Office, Lawmakers Sheltering During Capitol Riot May Have Been Exposed To Coronavirus, Stock Market: Tesla’s Uptrend Faces Serious Hazards. Because global markets are interlinked. O ne widely followed and conventional measure of the US yield curve inverted last week for the first time since 2007 with the 10-year US Treasury yield falling below the yield on the 2-year maturity. The Sevens Report is the daily market cheat sheet our subscribers use to keep up on markets, seize opportunities, avoid risks and get more assets. On Thursday, the benchmark yield on five-year Chinese government bonds rose above the 10-year yield, the first such inversion since data from the National Interbank Funding Center began in 2010. Isn't lower inflation a good thing? So what does the recent inversion of the yield curve in China say about the country’s economic outlook? China’s Inverted Yield Curve, June 28, 2017 If A Yield Curve Inverts In China, Does It Signal A Looming Recession? March 2019 at 12:37. If you have a 401k, it damn well should. The yield curve has inverted and you should sell your stocks. China’s Inverted Yield Curve, June 28, 2017 June 28, 2017 / in Investing / by Tom Essaye. The yield curve between the three-month and 10-year Treasury bonds inverted Tuesday for the first time since October amid rising fears due to the coronavirus outbreak in China that has sent stock markets around the globe sinking this week. 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