Dxy index
Dxy index. The dollar index is also holding steady as investors reflect on the ongoing inversion of the yield curve. As shown below, the yield curve has inverted for the first time since 2019. The spread between the 10-year and 2-year bond yields has dropped to the lowest level since 2007.
This performance of the yield curve simply means that investors are asking for better returns for short-term government bonds than longer ones. In a normal market, investors ask for a better return for long-term bonds. Therefore, analysts expect that the economy will go through a recession in the coming months or years.
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