Day: December 24, 2005

Christmas Inversions

Yesterday, at 4.37%, the yield on 2-year treasury notes rose above the yield on the 5-year notes (4.36%).  Today the inversion increased to 4 bps.  The 2’s and the 10-year notes are 3 bps from inverting.  If and when that happens the media will roar about a recession in ’06.  Cheers!