Evercore ISI Raises Alarm Over Un-Inverted Yield Curve and Potential Market Implications

Friday, 9 August 2024, 14:58

Evercore ISI has voiced significant concerns regarding the recent un-inversion of the US 2-Year and 10-Year Treasury yield curves. Historically, such a transition has preceded notable market selloffs, with similar patterns observed in the past 12 to 24 months. Investors should remain vigilant, as this shift could indicate underlying economic instability.
Seeking Alpha
Evercore ISI Raises Alarm Over Un-Inverted Yield Curve and Potential Market Implications

Concerns Over Yield Curve Changes

Evercore ISI has expressed concerns surrounding the recent un-inverted state of the 2-Year and 10-Year Treasury yield curves. This phenomenon has been closely associated with market volatility.

Historical Context

The last two instances of these yields transitioning from inverted to un-inverted resulted in significant market selloffs.

  • Historical Selloffs: Notable market downturns occurred within 12-24 months.
  • Investor Vigilance: Investors are advised to monitor market trends closely following these shifts.

Conclusion

The current un-inversion of the yield curve may signal underlying economic challenges. It reinforces the need for attention to shifting economic indicators.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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