ACTV - Re-Steepening Of The Yield Curve Signals Rising Unemployment And Deepening Bear Markets
2024-01-30 11:35:00 ET
Summary
- The US 10-2-year Treasury yield spread has moved from a deep inversion at 108 bps last July to -14 bps as of January 25, 2024.
- Re-steepening of the yield curve has historically coincided with rising unemployment claims.
- For stocks, corporate debt, and commodities, re-steepening of the yield curve has historically signalled the worst part of bear market losses.
The US 10-2-year Treasury yield spread (via YCharts below) has moved from a deep inversion at 108 bps last July to -14 bps as of January 25, 2024. This process is known as re-steepening....
Re-Steepening Of The Yield Curve Signals Rising Unemployment And Deepening Bear Markets