Yield Curve Inversion

[ooid]

I use yield curves for “cost of debt” calculations (re-financing and etc..) on REITs so my knowledge is quite limited. Looks like the current state is giving some alerts though so I wondered if any investors/analysts here have interesting insight or experience on this, other than the FT’s recent article below;




https://ig.ft.com/the-yield-curve-explained/

[clubsport]

I haven't read the FT article....... for the US yield curve to pivot around the 5 year note is very unusual and is briefly seen in later economic cycles, which may be a false flag right now when the fed have only started to raise the fed funds rate, the liklihood of more hikes are due based on talk and dot plots.

I wouldn't base any macro decisions on that snapshot you have of the curve and wait for more information from Fed speak and tightening with the current inflationary backdrop.

[Phooey]

It's ok guys, recession very unlikely. Back to plan A

https://www.youtube.com/watch?v=PKO0c1l7WRo

[clubsport]

As I suggested earlier in the thread don't make any quick judgements on a snapshot of the yield curve.

It turns out in the last 2 weeks the US curve has steepened more in a fed tightening cycle than any time since the early 1980's!

Let's see what is said along with the next hike, priced in for early May?