Chart of The Day – June 17, 2020

By: Chris Wenner in Charts 06/17/2020

Here’s a long-term look at the 2/10 Treasury yield spread.  Since inverting late last summer – ever so briefly – the 2/10 spread has started to widen, and currently sits at 55bps.  The Fed is controlling the front end of the curve, and will continue to do so, which may very cause the 2/10 spread to keep widening.  Historically, inversions followed by steepening usually signal a looming recession (without a tail-event like COVID-19 creating one).

CW

 

 

By: Chris Wenner

Managing Director

Jonathan Molchan

Wennco's innovative strategies and robust OCIO capabilities are designed for RIAs, Family Offices, and high-net-worth individuals.

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