Inflation and war impact markets, but Paul Tudor Jones says, ‘I love Bitcoin and gold’

Source: TradingViewThe yield curve stays deeply invertedOne of the biggest predictors of economic crisis historically has actually been the yield curve. Every economic crisis since 1955 has actually been preceded by an inversion of the curve between the yields of the 2-year and 10-year Treasury Bonds.In July, the 2s/10s yield curve for United States Treasuries hit a low of 109.5 basis points (BPS). While this inversion has since steepened, things still look bad from the viewpoint of shorter duration Treasuries.The 1-month and 3-month United States T-bills are currently yielding close to 5.5%, while the 2-year note is yielding close to 4.96%. The 10-year is yielding 4.65%, implying the 2s/10s curve is inverted by 31 BPS.A flatter yield curve compresses margins for banks due to the fact that it limits their capability to borrow money at lower rates while lending at higher rates, which can lead to restricted lending activity and a resulting financial downturn.

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Source: TradingViewThe yield curve stays deeply invertedOne of the biggest predictors of economic downturn traditionally has actually been the yield curve. While this inversion has actually since steepened, things still look bad from the perspective of shorter period Treasuries.The 1-month and 3-month US T-bills are currently yielding close to 5.5%, while the 2-year note is yielding close to 4.96%. The 10-year is yielding 4.65%, implying the 2s/10s curve is inverted by 31 BPS.A flatter yield curve compresses margins for banks due to the fact that it limits their capability to obtain money at lower rates while providing at higher rates, which can lead to restricted lending activity and a resulting financial downturn.