Today’s Yield Curve

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About a week ago, I mentioned history has shown the steepness of the US yield curve is correlated with America’s economic health. Further, I shared that an ‘inverted’ yield curve is often a harbinger of a recession.

I’m ‘linked’ to the US Treasury site so that I get a weekly email email with a ‘yield curve’ update. I wanted to share that update with you, but also suggest – should you be interested – that you sign up to also receive a weekly update from the Treasury.

It’s easy. Go to their website:

…and find (up in the top right) a hyperlink that says, “Get updates to this content.” Select the link, follow the instructions, and you should be golden!

Let’s look at the data:   The previous reading (remember, we’re subtracting the 3-month yield from the 10-year yield) was 1.43%.   Today, we’re at 1.55%.  It’s easier, for comparison and trend analysis, to use whole numbers.  So we’ll call our first reading 143 and this week’s reading 155.

As 155 is a larger number, the yield curve became slightly steeper.   This is a good sign…indicating the economy remains on solid footing.

Make sense?   🙂

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