From the
LA Times:
The interest rate, or yield, on the 10-year Treasury note — a benchmark for other long-term rates, such as for mortgages — ended the year at 4.39%.
By contrast, the yield on the two-year Treasury note ended at 4.4%.
Normally, longer-term bonds pay more in interest than shorter-term issues to compensate investors for the risk of tying up their money for an extended period.
When long- and short-term interest rates "invert," it often is a sign that bond investors believe the economy will slow — so they're locking in long-term yields in anticipation that rates overall soon will level off or even head lower.
The last time short-term rates were above long-term rates was in the second half of 2000. By the spring of 2001 the U.S. economy had fallen into recession.
i prefer watching "mad money" than reading this.
Sheeps get killed...
