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RE: Daily Crypto Markets Live Blog: 10K Comment Goal For This Week (06/07/22)

in LeoFinance • 3 years ago

The 7Y10Y is still inverted and so is the 20Y30Y. Although the latter really isnt that important the former is.

We have seen this for a while. The longer the yield curve has inversion and flatness, the worse the sign for the economy.

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3 years ago in LeoFinance by
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     3 years ago (edited) 

    I don't know much about yield curves beyond these facts:

    • It's business as usual as long as they don't cross each other.
    • If a longer-term curve crosses a shorter-term curve, it's a big deal (death cross, golden cross, etc.)

    So how common is it for 2 longer-term curves to cross 1 shorter-term curve? Or even 3 or more?

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       3 years ago  

      Yield curves deal with interest rates not stock charts so the crosses are for prices.

      A strong yield curve is upward sloping at a 45 degree angle.

      When the curve flattens out, that means the cost of money is lower farther out which is backwards. That means the view of inflation and economic expectations. That is not a good thing.

      It is more art than science. How long is the curve flat or inverted? It will move in and out. Also where is the overall curve in relation to the past.

      A lot of variables.

      The LIBOR yield curve is worse. It went flat in early December and hasnt shown the inclination to move out of it.

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         3 years ago  

        I think it's a bad thing and I really think we are going to get a recession to deal with the issues in the economy. It's just stagnating too much and we need to cut some of the waste off like the zombie corporations.

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