A lot people are wondering if the inverted yield curve means the US economy is headed for a recession:
My answer is the same as it was last year (and the year before that, and that, and that….) when this exact question was asked: there will be no recession. The inverted yield curve is just temporary and not indicative of recession. It is much more likely that bonds will snap-back than the economy go into recession and the fed lower rates. This means longer-term treasury bonds and corporate bonds offer a poor risk-to-return profile compared to cash and short-duration bonds, because the only way the curve will stay inverted is if the economy shows signs of recession within this year–and or–if the fed begins cutting rates, and I see neither happening.
10-year Treasury yields will likely return to 2.7% soon.