Savvy Trades and Investments

[jtomm]

How Does Yield Curve Un-Invert?

Inverted yield curve is when short-term interest rates are higher than long term rates. Most of the TV pundits have assumed that short-term rates will come down and that's how the yield curve will normalize. However, the other possibility is that long term rates will rise; that would get us back to a normal yield curve too. I don't claim to be Nostradamus, but not many of the pundits are even considering this as a possibility.

At the last Treasury auction, the 30-year T-bond went off at a yield of 4.837%