Yield curve inversion reached a multi-decade record on Tuesday as the spread between the U.S. 10-Year Treasury yield (US10Y) and the U.S. 2-Year Treasury yield (US2Y) reached 97 basis points. This represented the widest gap the curve since the early 1980s.
It’s a weird time in the markets. The data is saying a recession in the next 6-24 months but who really knows.
This also could be a very mild recession or none at all. The Fed seems like they can pump money into anything to save from disaster (recent banking situation). Student loans will start up again, inflation is cooling but rates may still increase, and the job market is still very strong.
I’m curious what people think.
I personally think there is more upside in the short term but bond funds are starting to look very lucrative/safe.
How are you playing this situation?
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