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January 27, 2020 | Yield Curve Inversions Again Stretch Out 7 Years

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
Huge portions of the the yield curve are inverted. Most of the inversions are by tiny amounts, but it’s another warning.
With growing concern over the Coronavirus, yields dropped again today and portions of the yield curve are inverted out to seven years.For example, the yield on the 7-year not is lower than the yield on the 1-year not and everything shorter in duration.

Yellow highlights show the yield on the 3-year, 2-year- and 1-year notes is each lower than the next shorter duration.

And the yield on the 30-year long bond is again flirting with the 2% level.

For discussion of the coronavirus threat, please see Hundreds of Virus Carrying Planes Headed for US, London, Paris, Vancouver.

Also see Chris Martenson’s proclamation regarding the World Health Organization: “WHO is Derelict” on Coronavirus

Mike “Mish” Shedlock

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January 27th, 2020

Posted In: Mish Talk

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