Good ideas and conversation. No ads, no tracking. Login or Take a Tour!
kleinbl00 · 2128 days ago · link · · parent · post: What’s the Yield Curve? ‘A Powerful Signal of Recessions’ Has Wall Street’s Attention
Even the explainers in finance are shitty. An inverted yield curve means you make more money loaning it to the government for two years than you do loaning it to the government for ten years. Because bonds are sold auction-style the price is what someone can sell it for. When everybody in the business of loaning money to the government is most comfortable loaning it for two years rather than ten years, it stands in as a powerful signal that people with money don't want to loan it out for very long. Generally because they think there are better things they can do with it. Like wait for prices to come down. And buy later.