Bond Anomaly That Twisted Yields From US to Germany Is No More
- German yield curve is the latest to turn positive after US, UK
- Move comes as central banks lower rates to stave off recession
This article is for subscribers only.
A quirk in global bond markets that upended traditional relationships between short- and long-term debt in recent years is rapidly fading, with broad implications for economies and investments in more than $40 trillion of government securities.
After persisting for as long as two years in the US, the so-called inversion in yield curves — an unusual situation where rates on short-term debt exceed those of their longer-term counterparts — is unwinding in many parts of the world.