What happens when the Fed raises rates by 450 basis points (bps)? Ok, easy question, the answer: inverted yield curves. Based upon arguably the two most closely watched yield curve gauges, the Treasury 3-Month/10-Year and Treasury 2-Year/10-Year spreads, the degree of inversion has now either set a record or is at its most negative differential in over 40 years.
So, why is this historical inversion of importance?
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