A test for the US Fed: the inverted bond yield curve3 min read . Updated: 31 Oct 2022, 10:58 AM IST
- Investors are in a cautious mood, demanding a higher annualized return for short-term US bonds.
In the middle of last week, the US bond yield curve inverted. On 26 October, the yield on a treasury bond maturing in three months stood at 4.032%. In comparison, the yield on a treasury bond maturing in 10 years stood at 4.007%, implying that the yield on a three-month treasury was higher than the 10-year treasury. This is the first time something like this has happened since early March 2020, when the covid-pandemic broke out.
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