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The Yield curve inversion

It’s probably redundant to talk about #yieldcurve inversion, since it’s been flashing danger for quite some time now. Placing the human toll aside, something similar it’s happening to the #ukraineconflict. We’ve got used to it. It’s not news. But it’s not right. It doesn’t make sense to have a 6 month T-bill 100 bps above the 30 year bond. This yield curve shape is a big problem. Treasuries are the stepping stone used to value almost all financial assets. And that stone is not firmly grounded. Cheap & expensive are relative terms, not absolute, and the reference is not solid enough to provide clarity on how much an asset (class) is worth.


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