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A Flattening Curve Between Ten Year and Two Year Predicts Economic Slowdown
A flattening curve between ten year and two year is a fantastic predictor. Two year government bondis have to reflect, by design, the very shorter monetary policy the federal reserve will try to force upon markets. And as you see this happenin the shape of the iscer between two years and ten year, tends to flatten very aggressively all the way to actual inversion. The unemployment rate chart to show there also tracks this very, very good and you can see a dozen employment rates drop. But it's damned if it is a strong economic slow down, right?