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Could 2-Year Yields Be Suggesting the Start of Another Financial Crisis?

Published 03/13/2023, 01:20 AM
Updated 07/09/2023, 06:31 AM

With bond yields (and interest rates) rising sharply, it’s understandable that most of the world is hoping for lower rates.

Lower interest rates allow for more flexible lending to both businesses and consumers… BUT…

As the weekly chart below shows, the last time 2-year bond yields were this high and interest rates turned lower, it was the start of challenges for stocks (i.e. The Financial Crisis).

2-Year Treasury Weekly Chart

And currently, 2-year Treasury bond yields are testing that very same level, and the 150-week change is up 2,127%. Yikes!

Will they turn lower here? Will it be different this time? Stay tuned.

 
 

Latest comments

Honestly, it looks like it. Powell should resign.
Will they turn lower? You just saw the most violent drop in 2yr yeilds overnight and friday maybe ever
No Kidding a Monday AM quarterback. Rates will be half by year end, fear alone will crush inflation
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