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by dragontamer 2688 days ago
Fair, we're not in a 10-year inverted scenario yet. But we're pretty close.

> (currently it is 0.18 in Feb 2018)

Note that the 1-year is inverted with the 2-year. So while 10year-2year is 0.18, the 10year-1year is 0.1.

https://www.treasury.gov/resource-center/data-chart-center/i...

The lower-end of the curve is ALREADY inverted. But that's not "the indicator", the 10-year is the indicator that is tracked. Still, seeing the curve invert between 1-year and 5-years is worrysome to me.

This is a less reliable indicator: but when the lower end of the curve inverts, usually the higher end inverts soon afterwards as well.

1 comments

I think we dipped briefly during intraday trading a few weeks ago.
On the 10-year?

We've definitely dipped on the 5-year and 7-year. But I'm not aware of any inversion on the 10-year (even an intra-day one). Or was it on the Global Bond market? (I think I recall one story about the global bond market becoming inverted...)

Hmmm... do you have a citation by any chance? I'm definitely interested if you can remember where you saw that data, for the full details of the situation.

Turns out I misremembered. I was thinking of the inversion which happened in December, which was as you said, the 3- and 5- year briefly inverted (by 1 basis point).