Yield Curve Flashes Recession Warning In Collapse To 10 Year Lows

Since The Fed unveiled its cunning plan to unwind the balance sheet ever so gradually and in an ever so well-telegraphed manner, the US Treasury yield curve has collapsed!

Banks do not care as the yield curve has crashed to its flattest since 2007...

In fact, the collapse to just 91bps places the yield curve right at the start of both of the last two recessions...

So, no! You do not need to invert the yield curve to see a recession - in fact we are already there.

Comments

junction lester1 Thu, 09/21/2017 - 15:03 Permalink

The USA never recovered from the dot.com bubble crash and 9/11.  All that growth in corporate share prices is the result of the unlimited creation of derivatives.  The repeal of the Glass-Steagall Act in 1999 unleashed the Kraken of NWO greed.  The Law of the Jungle now rules the marketplace. And, aside from sites like Zero Hedge, all the news media does is pass on fictions about how great almost everything is, even as the mortality rates skyrocket for white males without college degrees. The guys whose factory jobs were all shipped overseas by the Bushs and Clinton.

In reply to by lester1

Mumms Thu, 09/21/2017 - 15:13 Permalink

There is something big coming and the big boys know it. It is more than the usual hype we have seen on Zerohedge for the past several years this is something real.  Goldman is now leaking Shepwave analysis after the fact.  Based on what Shepwave has been saying for the past week I am looking for something big to come in the next week. See what the NAZ did today.  Plus their calls in gold and oil are showing the same thing. 

Uranium Mountain Thu, 09/21/2017 - 15:39 Permalink

The Oregon Investors Council wants to move pension accounts into US Treasuries.  They think this is a safe move since it's retirees are getting older and they want to help prevent them from a massive portfolio shock.  I find it ironic that people that obviously don't know jack shit about the markets are actually in charge of billions in retirement funds.

Nomad Trader Thu, 09/21/2017 - 17:36 Permalink

Treasury can easily steepen it by selling more long bonds. And why wouldn't they when the cost is only marginally higher. Because at the end of the day the curve is too big to fail.