- Recession fears took hold on Wednesday as the short-term Treasurys paid more than long-term notes, a warning sign that investors are rapidly shifting their money into bonds to shield against the potential losses they could incur by holding stocks.
- A brief inversion could be just an anomaly (others have not preceded recessions), but it may depend on how long the condition lasts.
- Others say the inversion occurred because of the Federal Reserve, which has kept its benchmark short-term rate "too high," while some maintain the yield curve has been distorted by more than $15T worth of foreign bonds that pay negative interest rates.