
Yield Curve Inversion & Fake Rolex Watches On The Rise
Bloomberg Daybreak: Europe Edition
00:00
The US Yield Curve Inversion: The Strong Signal of Recession?
The 10 year yield is significantly lower than two year yields, something like 110 basis points. The big question is we will see re-steepening at some point, right? That's bound to occur. It's a natural state for markets. But how does that occur? Do we see the short end of the rates markets collapse with central banks crashing economies and inflation coming down as a result? Or do we see 10 year yields rising because economies remain strong and inflation only falls slowly? We're not seeing the US recession yet. So the evidence isn't there yet.
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