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home / news releases / IEI - Fear Not The Inverted Yield Curve - Yet


IEI - Fear Not The Inverted Yield Curve - Yet

By Peter C. Earle

As the financial news networks have reported, the yield curve on government securities has inverted. When the yield curve inverts, which is to say when short maturity bonds yield higher than longer maturity bonds, there is a general view that a recession in the next 12-24 months becomes more likely.

It is, in any case, an unusual situation, and one that garners attention from macroeconomists and financial market participants alike.

In fact, going back to 1960, inversions of the yield curve have occurred nine times, with two not preceding a recession.

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Stock Information

Company Name: iShares 3-7 Year Treasury Bond ETF
Stock Symbol: IEI
Market: NASDAQ

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