In a state of panic, media outlets are resorting to misleading claims, insisting that yield curve normalization does not necessarily indicate a recession.

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Did ya’ll see that yield curve pop today? It’s well into positive territory now

www.cnbc.com/quotes/10Y2YS

This Barron’s article tries to play it off by saying that “Typically, a recession occurs between six and 24 months after the 2y10y yield curve—a chart mapping the yields on debt —has inverted. It is tempting to say things have malfunctioned in the bond world and that we should just give the U.S. economy a clean bill of health when yields on 10-year debt finally end a trading day above those on 2-year notes.”

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www.barrons.com/articles/yield-curve-inversion-economy-47e40dbc

Ok, this is double speak bullshit to avoid the panic. The depression INVARIABLY comes after it normalizes and has NOTHING to do with when the inversion STARTS.

Invariably. No exceptions since the 80s.

They’re bullshitting you, because they’re busy moving their money out, slowly, carefully. You see that slow dip in the market? That’s the graph that says they’re leaving US to hold the bag.

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www.bls.gov/news.release/empsit.nr0.htm

Mannarino has a good explanation of the weirdness in the bond market here

AC


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