Data from Jinshi on June 7th, Thursday, the two-year US Treasury yield has been higher than the ten-year US Treasury yield for 482 consecutive days. The inverted yield curve is usually regarded as a precursor to an economic recession. For investors who bet that interest rates will return to normal levels, Bank of America strategists suggest shifting their attention to the Bank of Canada. Analysts such as Ralph Axel and Katie Craig stated that 'the inverted curve is the result of the market's expectation of the Fed's interest rate cut. The slower the rate cut of the Fed, the longer the market can maintain its expectation and believe that there will be further rate cuts in the future.' 'Compared to the US curve, the outlook for the Canadian curve may be better because in the next 6 months, the Bank of Canada may be able to relax its policies faster or provide more dovish guidance.'
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Data from Jinshi on June 7th, Thursday, the two-year US Treasury yield has been higher than the ten-year US Treasury yield for 482 consecutive days. The inverted yield curve is usually regarded as a precursor to an economic recession. For investors who bet that interest rates will return to normal levels, Bank of America strategists suggest shifting their attention to the Bank of Canada. Analysts such as Ralph Axel and Katie Craig stated that 'the inverted curve is the result of the market's expectation of the Fed's interest rate cut. The slower the rate cut of the Fed, the longer the market can maintain its expectation and believe that there will be further rate cuts in the future.' 'Compared to the US curve, the outlook for the Canadian curve may be better because in the next 6 months, the Bank of Canada may be able to relax its policies faster or provide more dovish guidance.'