How Does the Bond Desk Work for an Invert?

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KugsCheese
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Joined: Jan 2 2010
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How Does the Bond Desk Work for an Invert?

The standard explanation for an inverted yield curve is that investors assume a somewhat deflationary future so bid up longer bonds.  I guess this is called the safe harbor.  But in the case of crushing debt it seems odd unless longer term bonds stop trading.   So does the phone not ring to sell/buy long term bond but does for short term bond?  Then the long term market is closed for the government does not want to float at anticipated interest rate?  If so, then the definition needs update.  Someone call Investopedia. 

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