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Could 2-Year Yields Be Suggesting the Start of Another Financial Crisis?

By Chris KimbleBondsMar 13, 2023 06:20
ng.investing.com/analysis/could-2year-yields-be-suggesting-the-start-of-another-financial-crisis-157861
Could 2-Year Yields Be Suggesting the Start of Another Financial Crisis?
By Chris Kimble   |  Mar 13, 2023 06:20
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With bond yields (and interest rates) rising sharply, it’s understandable that most of the world is hoping for lower rates.

Lower interest rates allow for more flexible lending to both businesses and consumers… BUT…

As the weekly chart below shows, the last time 2-year bond yields were this high and interest rates turned lower, it was the start of challenges for stocks (i.e. The Financial Crisis).

2-Year Treasury Weekly Chart
2-Year Treasury Weekly Chart

And currently, 2-year Treasury bond yields are testing that very same level, and the 150-week change is up 2,127%. Yikes!

Will they turn lower here? Will it be different this time? Stay tuned.

 
 
Could 2-Year Yields Be Suggesting the Start of Another Financial Crisis?
 

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Could 2-Year Yields Be Suggesting the Start of Another Financial Crisis?

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