Depends - If the 6 month is 5% and the 2 year is 4%
But in 6 months rates drop because a recession, then when your 6 month UST matures you may only be able to invest it at 2% rate. In this case the ROI was better locking in the 2yr at 4% even then 4% was less than the 5%.
That is how the recession ties into the inverted curve piece
Depends - If the 6 month is 5% and the 2 year is 4%
But in 6 months rates drop because a recession, then when your 6 month UST matures you may only be able to invest it at 2% rate. In this case the ROI was better locking in the 2yr at 4% even then 4% was less than the 5%.
That is how the recession ties into the inverted curve piece
Depends - If the 6 month is 5% and the 2 year is 4%
But in 6 months rates drop because a recession, then when your 6 month UST matures you may only be able to invest it at 2% rate. In this case the ROI was better locking in the 2yr at 4% even then 4% was less than the 5%.
That is how the recession ties into the inverted curve piece
Yes.