The Yield Curve Inverts: Time to Hunker Down?

August 14, 2019 | Ben Mohr, CFA, Director of Fixed Income

This morning, the key range of the U.S. Treasury yield curve that is viewed as the bellwether of recessions — the 2-year versus the 10-year — inverted. The 10-year yield fell to 1.61%, below the 2-year’s 1.62%, as of the time of writing. The yield curve serves as a key indicator of market sentiment on future interest rates and therefore the future state of our economy. An upward sloping curve signifies a growing economy, while an inverted curve portends a contracting economy.

This newsletter details what investors should be aware of in light of the inversion, including the possibility of a recession, effects on the equity market, and other current events that may contribute to uncertainty and volatility.

Read > The Yield Curve Inverts: Time to Hunker Down?

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Ben Mohr, CFA
Director of Fixed Income

Get to Know Ben

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