Straits Times Economics Associate Editor failed O levels Economics ah?
How can he say that "yield on the two-year US Treasury bond fell below that on the 10-year bond, resulting in an inversion of that part of the yield curve".
This contradicts common economic knowledge: "The yield curve describes the yields on different maturities of US government debt, and its inversion — when rates on long-term bonds fall below those on short-term debt — has been a reliable indicator of recessions in the past.".
https://www.ft.com/content/9fcd5366-bed4-11e9-89e2-41e555e96722
Economic Affairs: Making sense of market pessimism
Vikram Khanna
PUBLISHED: AUG 21, 2019, 5:00 AM SGT
https://www.straitstimes.com/opinion/making-sense-of-market-pessimism
How can he say that "yield on the two-year US Treasury bond fell below that on the 10-year bond, resulting in an inversion of that part of the yield curve".
This contradicts common economic knowledge: "The yield curve describes the yields on different maturities of US government debt, and its inversion — when rates on long-term bonds fall below those on short-term debt — has been a reliable indicator of recessions in the past.".
https://www.ft.com/content/9fcd5366-bed4-11e9-89e2-41e555e96722
Economic Affairs: Making sense of market pessimism
Vikram Khanna
PUBLISHED: AUG 21, 2019, 5:00 AM SGT
https://www.straitstimes.com/opinion/making-sense-of-market-pessimism