The USA is currently experiencing the longest and steepest yield curve inversion in recorded history between the 10-year Treasury Note and 3-month Treasury Bill. Historical data shows that such inversions have preceded economic recessions. The prolonged inversion is seen as “smart money” signaling skepticism about the Federal Reserve’s narrative on inflation. This skepticism raises questions about why inflation expectations have turned into deflation expectations and what is causing the delay in normalization and the onset of a recession.
🚨 USA 🇺🇸 currently in the longest & steepest yield curve inversion in the entire recorded history between the 10YR Note & 3M Bill ⚠️
History of inversions (see chart 👀👇):
1) 1982 -> 18 days (-0.96)
2) 1989 -> 221 days (-0.35)
3) 2000 -> 199 days (-0.95)
4) 2006 -> 317 days… https://t.co/ZNXG7WZyYr pic.twitter.com/zA7U6mx3rt— CJK (@CJKonstantinos) February 5, 2024