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Should We Fear The Inverted Yield Curve SE
Should We Fear The Inverted Yield Curve SE
Figure 1
U.S. Treasury Yield Curve: October 16, 2018
Percent
3.5
3.26 3.32
3.1 3.16
3.0 2.95 3.02
2.87
2.66
2.5 2.46
2.22 2.3
2.19
2.0
1.5
1.0
0.5
0
1 MO 2 MO 3 MO 6 MO 1 YR 2 YR 3 YR 5 YR 7 YR 10 YR 20 YR 30 YR
Maturity
SOURCE: Daily Treasury yield curve rates, U.S. Department of the Treasury;
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield,
accessed October 15, 2019.
Figure 2
U.S. Treasury Yield Curve: August 27, 2019
Percent
2.5
2.07 2.03
2.0 1.98 1.97
1.94
1.77 1.77
1.0
0.5
0
1 MO 2 MO 3 MO 6 MO 1 YR 2 YR 3 YR 5 YR 7 YR 10 YR 20 YR 30 YR
Maturity
SOURCE: Daily Treasury yield curve rates, U.S. Department of the Treasury;
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield,
accessed October 15, 2019.
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Name___________________________________ Period_______
6. The relationship between the slope of the yield curve and the onset of recession can be best described as a(n)
a. causal relationship.
b. stylized fact.
c. fancy regularity.
d. amusing curiosity.