Brian Chappatta, Columnist

Inverted Yield Curve Reminds Investors That Cycles End

Buyers of risky assets should begin to brace for a rough patch in the coming years.

March 22, 2019 at 3:26 PM UTC

Brian Chappatta is managing editor of Bloomberg News' leveraged finance and distressed debt teams. He was previously managing editor and team leader of its wealth group. Before that he was a Bloomberg Opinion markets and finance columnist and a bonds reporter for Bloomberg News.

All good things come to an end.
Photographer: Chris Ratcliffe/Bloomberg

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What is there to say about the inverted yield curve that hasn’t been said already?

The yield spread between three-month and 10-year Treasuries fell below zero on Friday for the first time in more than a decade. It’s arguably the most significant inversion yet because such a move has accurately predicted the past seven recessions. So, yes, it’s true: The world’s biggest bond market is calling for a economic downturn in America’s future.