During August, the long end of the yield curve continued to decline and become more inverted, with the two-year US Treasury yielding more than the ten year. This is a negative signal on economic growth, likely due to the ongoing US-China trade tensions. Historically, the yield curve has inverted before every recession, but there hasn’t been a recession after every yield curve inversion.
Key Rates: Capital Markets Domestic and Abroad
Our Municipal Market Update is data-driven, one page sheet that is intended to give you an overview of key interest rates – both floating and swap-to-fixed as well as the credit spreads of key local and state entities with data as of August 31, 2019. It is written for those making credit and investment related decisions for municipalities and non-profit institutions. If you have additional questions or would like to learn more about our municipal advisory and investment banking services, visit our Municipal Advisory page and contact Michael Stone, CFA.