
THIS IS PROBABLY THE MOST IMPORTANT CHART FOR THE US STOCK MARKET. US 2Y-10Y Treasury yield spread. Right now, US 10Y yield is 30BPS higher than US 2Y yield vs. 50BPS higher just 3 weeks ago. Historically, whenever this flipped (US 2Y higher than US 10Y), the US economy entered a period of slowdown, and the stock market suffered. Q1 2007: The US 2Y yield went higher than the US 10Y yield. After that, US stocks peaked and the economy entered a recession. Q4 2019: The US 2Y yield went higher than the US 10Y yield. After that, the Covid crash happened, and everything came to a halt. Q2 2022: The US 2Y yield moved above the US 10Y yield again. The US economy entered a technical recession, and the S&P 500 entered a bear market. #TreasuryYields #YieldCurve #YieldCurveInversion #US10Y #US2Y #StockMarket #SP500 #USRecession #EconomicSlowdown #BondMarket #FederalReserve #WallStreet #MarketCrash #FinancialMarkets #TradeWithDecrypters
