Wednesday, August 21, 2019

Germany's bond yields go fully-negative

Comment:

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:

  1. 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.
  2. Usually the press doesn't go gaga over an inverted yield curve.  Normally, it is a non-event.
  3. 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.
  4. 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.




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