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      12-05-2018, 08:01 PM   #3
2000cs
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The fed is also liquidating its (QE) balance sheet, which is raising short-term yields and thereby creating some of the inversion. Add to that the Fed wanting to raise rates (again it’s tool is short term rates) so it has room to cut when the next recession arrives, and the concerns about possible recession or lack of sustained growth (new House fails to make tax cuts permanent, can’t agree with a Senate on infrastructure, etc) and housing seems to have run up too quickly - and you have a recipe for inversion.

So many factors that it isn’t “classic” market inversion and thus may not be a solid indicator of recession, but certainly a warning sign.

Last edited by 2000cs; 12-05-2018 at 08:58 PM..
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