The implications are a bit worrying for spreads, particularly for the corporate market. The inversion means the market thinks the Fed has tightened too much and expects short-term rates to be cut by the Fed.
- David GoldmanBecause of the inversion, the heat races will be extremely intense with the fastest drivers in time trials trying to make it to the front to qualify for the night`s dash and Saturday`s $50,000 to win feature. They`ll be like mini feature events.
- Ann LivingstoneThere`s not a big inflation problem. Under those circumstances, you get a benign yield-curve inversion.
- Ashley Gaeta