As opposed to Germany, the 30-year yield is still above 2%. Which of these would YOU prefer?
Might explain some of the lowering long bond yields.
As for the inverted yield curve here in the States, a few oddities need to be mentioned:
- Usually the short term rates RISE and overtake the longer term rates. This time, the longer term rates are taking a dive below the shorter term rates.
- Usually the press doesn't go gaga over an inverted yield curve. Normally, it is a non-event.
- Recessions are never blamed on Federal Reserve Policy. If the Media is complaining about the yield curve now, then this is a first. When a recession finally hits after a long time with an inverted yield curve, the blame goes to greedy corporations. If it is a Republican administration, then it is their fault. If not, it is somebody else's fault. Never left-wing political moves.
- A recession is usually accompanied by news that sounds like a recession. Layoffs, poor economic numbers, and so on. Instead of that, the numbers are good.
News reporting sucks. But I repeat myself.
UPDATE 2-Germany sells new 30-year bond with negative yield, a first https://t.co/yB4g2xCsjF— Greg Meadows (@BootsandOilBlog) August 21, 2019
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