For years now, the inversion of the yield curve, whereby the yields on the 10-year treasury fall below that of the 2-year treasury, have been a signal for many as a coming recession. This happened in the mid 2000s as well as preceding the dot-com bust in the late 1990s. This happened this week, and many now worry about the possibility of a coming recession.
While there is no guarantee that this will result in a recession, and past performance is not indicative of future performance, it seems that this inversion is one more data point that indicates, economically speaking, we could be in for a difficult next couple of years.
