Editing Direxion daily 20 year treasury bull 3x
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==== Inverted Yield Curve ==== | ==== Inverted Yield Curve ==== | ||
[[File:T210.jpg|2 year treasury yield minus 10 year treasury yield data<ref>https://fred.stlouisfed.org/series/T10Y2Y</ref>]] | [[File:T210.jpg|thumb|464x464px|2 year treasury yield minus 10 year treasury yield data<ref>https://fred.stlouisfed.org/series/T10Y2Y</ref>]] | ||
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Treasury bonds with longer maturity date typically has a higher yield, as it has increased economic uncertainty and devaluation with rising annual inflation. However when shorter bonds have a higher yield than long term bonds, it is described as a yield curve inversion. This inversion is most commonly measured by 2 year yield minus 10 year yield. When this metric dips below 0 basis point, it accurately predicted every recession in the last half century thus regarded as an accurate indicator of a recession. Historically it required 6 to 18 months since the inversion for the recession to occur. It's recognised as a reliable recession indicator as it illustrates the shortage of money supply in the near term, which indicate the economic turmoil. | Treasury bonds with longer maturity date typically has a higher yield, as it has increased economic uncertainty and devaluation with rising annual inflation. However when shorter bonds have a higher yield than long term bonds, it is described as a yield curve inversion. This inversion is most commonly measured by 2 year yield minus 10 year yield. When this metric dips below 0 basis point, it accurately predicted every recession in the last half century thus regarded as an accurate indicator of a recession. Historically it required 6 to 18 months since the inversion for the recession to occur. It's recognised as a reliable recession indicator as it illustrates the shortage of money supply in the near term, which indicate the economic turmoil. | ||