Inverted Yield Curve in 2018 Is Taking Over Wall Street Outlooks
- Survey of bond strategists reveals calls for more flattening
- BMO, FTN, Janney and Mizuho see spread below zero next year
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Wall Street is coming down with a case of curve-flattening fever.
After weeks of relentless narrowing of the spread between short- and long-dated Treasuries, strategists have been left with little choice but to contemplate an inverted yield curve when crafting outlooks for 2018 and beyond. Now, they’re warming to the idea that this oft-cited recession signal could flash as soon as next year.