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Let's Get Cyclical; Cyclicals Respond to Long Term Yield Curve Steepening

Those scary words “yield curve inversion” are being bandied about in the headlines by the press these days. Bad news sell papers, of course, but prudent investors should look beyond the headlines. The latter often don’t do justice to the phenomena supposedly being explained.

What part of the Treasury yield curve is inverting seems to matter. And right now the U.S. Treasury 3- months bill to 10-year note is a negative 5 basis points. But, as I’ve noted here before, it’s the 10 year-30 ye...

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