My recent discussions on the Market Misbehavior podcast have often included some comments on the interest rate environment, particularly the shape of the yield curve. We’ve had an inverted yield curve since late 2022, and so the yield curve taking on a more normal shape could mean a huge tailwind to certain sectors and groups. When the Yield Curve is No Longer Inverted Here we’re showing the Ten Year Treasury Yield, along with two ways to show the shape of the yield curve by comparing different durations. The first panel below the price compares the 3-month yield to the 10-year yield, and the bottom panel shows the 2-year yield versus the 10-year yield. Back in 2022, both of these spreads went below the zero line, indicating that the yield curve was inverted because long-term yields were now lower than short-term yields. Due to the Fed raising short-term interest rates to try to bring…
