JPMorgan Says Stock Traders Are Looking at the Wrong Yield Curve

Equity investors have been worried about the wrong yield curve, according to a strategist at JPMorgan Chase & Co.


There’s concern that the recent inversion of the yield curve is a sell signal for the market, but critically there’s an average 18-month lag between such a move and the onset of a recession, Mislav Matejka said in a note to investors Monday. The strategist recommends looking at the spread between the 10-year and 2-year Treasury yields -- which is about 18 basis points away from inversion -- instead of using the inverted 10-year and 3-month Treasury yield difference that has stock traders on edge.

https://www.bloomberg.com/news/articles/2019-04-08/jpmorgan-says-stock-traders-are-looking-at-the-wrong-yield-curve