Posted by DigiNomad on 9th of Apr 2024 at 12:37 pm
Unless it goes positive because of the long end rising faster
than the short end. That is bullish for asset prices (signal longer
term economic growth and higher inflation expectations). The curve
has rarely univerted with a "bear steepener" so we mostly don't
talk about it (rates are usually falling when the curve uninverts).
*Note that the bear in bear steepener is bearish for bonds and
bullish for equities (typically).
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Two / Ten is shrinking.
Posted by jroger on 9th of Apr 2024 at 10:35 am
Two / Ten is shrinking. When the ratio goes positive, history predicts the clock starts ticking to a major correction.
Unless it goes positive because
Posted by DigiNomad on 9th of Apr 2024 at 12:37 pm
Unless it goes positive because of the long end rising faster than the short end. That is bullish for asset prices (signal longer term economic growth and higher inflation expectations). The curve has rarely univerted with a "bear steepener" so we mostly don't talk about it (rates are usually falling when the curve uninverts). *Note that the bear in bear steepener is bearish for bonds and bullish for equities (typically).