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2s & 10s Yield Spread (Special Case)

TIMEFIBS ARE BASED ON US10Y-US02Y CYCLE
  • The chart tends to move in a type of a sine curve.
  • Upside and downside moves usually closely follow the growth cycle of the US economy.
  • Curve steepening signals about incoming recession.
  • But this time spread is moving higher for a different reason considering recent overall economic outlook.
  • In Q2 we've just came out of the recession.
  • Indices will correct, but won't crash in the next 2-3 years.
  • However, US10Y-US02Y entering TP level might actually trigger relatively bigger correction in indices.
Spread is compared directly to SPX to monitor inverse correlation.
Bitcoin is added to the whole thing just for a research purposes.
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