Inverted Yield Curve

The United Kingdom and Germany, two of the world’s largest economies, have started on the path towards contraction even with the former moving ahead with plans to leave the EU.

That, coupled with stunted growth in China, Argentina’s stock market fall of nearly 50%, and the recent US Treasury yield curve inversion have officially thrown the world into a spiral of economic disappointments.

A yield curve inverts when the interest rates on short-term bonds are higher than the interest rates paid by long-term bonds, indicating that people are so worried about the near-term future that they want to insure themselves by making safer long-term investments.

“The stars are aligned across the curve that the economy is headed for a big fall,” said Chris Rupkey, Chief Financial Economist at MUFG Union Bank. “The yield curves are all crying timber that a recession is almost a reality, and investors are tripping over themselves to get out of the way.”

The yield curve has inverted before every U.S. recession since 1955, which suggests faltering investor faith and an economic downturn in the near future.

Do you think it’s just a passing fad or will this be a turning point in economic history?

October 1, 2022
Monthly Snapshot – September 2022
Click here to download the report The US market is witnessing the sharpest reversal in its real-estate sector after...
September 20, 2022
Conflict Theory
Why are we Constantly Competing?  “A house may be large or small; as long as the neighboring houses are...
September 6, 2022
Cosmo First Limited
Key Highlights Rebranded to Cosmo First Limited Foraying into the D2C Petcare industry with the launch of ZIGLY, a...
September 2, 2022
Monthly Snapshot – August 2022
Click here to download the report China has undertaken a slew of economic measures and policies to revive its...
July 31, 2022
Monthly Snapshot – July 2022
Download the report The GST Council recently reviewed tax rates and assumptions for certain items to promote growth in...
July 5, 2022
Monthly Snapshot – June 2022
Click here to download the report WTO recently made special announcements- the end of fishing subsidies to illegal fisheries...
June 29, 2022
Kansai Nerolac Paints Limited
Click here to download the report Key Highlights Nerolac introduced Neropoxy Solvent Free coating for water pipelines and C5...
June 3, 2022
Monthly Snapshot – May 2022
Click here to download the report When it comes to instant noodles which is the first brand that comes...
May 12, 2022
Campus Activewear Limited
Click here to download the report Campus Activewear: Athleisure Super-Giant in the making? Overview Campus Active Ltd. (NSE: CAMPUS)...
April 30, 2022
Monthly Snapshot – April 2022
Click here to download the report When we think or hear of e-commerce websites, the first few names that...