"Three of the scariest words in economics used to be inverted yield curve"

The 10-year treasury yields fell for the first time below the Fed funds rate since long time. Precisely since short before the great bear market in 2000 began.

Here is an article in CNNMoney: Yields throw the Fed a curve

But what is it about? - Are the investors not afraid of coming inflation? This was the most prominent explanation (excuse?) for the drop in the stock markets, wasn't it? If inflation is to come, the yields should point higher, right?

Maybe the investors are seeking a "safe heaven" - and I suppose first they will redraw some funds out of the more volatile and "insecure" markets as Emerging Markets and maybe commodities.

And by the way - in a globalized world the global yield curve matters more and more. And it is not inverted.

stocks bourse yields yield curve

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