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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Dave-in-MarinCa who wrote (56239)7/7/2000 3:45:15 PM
From: pater tenebrarum  Read Replies (1) | Respond to of 99985
 
i don't know why it's not completely inverted yet, but it probably has to do with the many leveraged positions engaged in various yield spread trades. but obviously, since the Fed funds rate is currently the highest point of the yield curve, we can safely ignore this little dip in the 3month to 1 yr. maturities and declare the curve inverted. funny enough, NO-ONE is worried about this, and yet, it's the most reliable tool for forecasting recessions there is.