Portion of US Treasury Yield Curve Inverts

By: Mike Shedlock | Wed, Feb 3, 2016
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Inversion!

Curve Watchers' Anonymous has had its eyes on the yield curve in expectation that portions of the curve would invert. A small inversion did happen on Tuesday when yield on 6-month treasuries briefly traded at a higher yield than 1-year treasuries.


Bloomberg Screen Shot

US Treasury Yields

I captured the above chart at 5:00PM but similar conditions existed for several hours.


Yield Curve 6-Month to 5-Year

Yild Curve 6-Month to 5-Year Chart

I created the above chart in Stockcharts. Alas, Stockcharts uses end-of-day vales only so it appears there is no inversion today. Yesterday the 6-month and 1-year treasuries closed with the same yield.

Those who insist the yield curve needs to invert before a recession can happen, now have that inversion, even if it's a tiny one.

 


 

Mike Shedlock

Author: Mike Shedlock

Mike Shedlock / Mish
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Mike Shedlock

Michael "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Visit http://www.sitkapacific.com/ to learn more about wealth management for investors seeking strong performance with low volatility.

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