T10Y2Y trade ideas
KOBE!EXIT. ALL. MARKETS.
All you had to do was listen, but now you own nothing, are "living" in a pod, and eating bugs. The average retirement age is now 150 years old. The average life expectancy, 49 years old. This isn't a grave, it's the future you chose.
2/10 Treasury Spread (T10Y2Y)The 10-year minus 2-year Treasury bond spread is generally considered to be an advance warning of severe weakness in the stock market; credit spreads often widen during times of financial stress wherein the flight-to-safety occurs towards safe-haven assets such as U.S. treasuries and other sovereign instruments. Yield curve inversion takes place when the longer term yields falls much faster than short term yields. This happens when there is a surge in demand for long term Government bonds (e.g. 10 year US Treasury bond) compared to short term bonds. The yield curve is often viewed as a leading indicator of recessions; its ability to anticipate economic downturns endures across specifications and time periods: an inverted yield curve has been viewed as an indicator of a pending economic recession. When short-term interest rates exceed long-term rates, market sentiment suggests that the long-term outlook is poor and that the yields offered by long-term fixed income will continue to fall.
Huge possible recession in the works
This is purely an information post. This is not financial advice.
Here you see the 10y vs 2y Treasury Constant Maturity and below that is the US Inflation rate. Yellow arrows and lines indicate the previous and current intercepts from 2007-2008 to today 2020-2021 and on top of that a potential issue of the US defaulting on their debt this coming October 18th. Worth keeping an eye out on these indicators.
