Ready for the 80s? How to Trade the Deepest Yield Curve Inversion in 40 Years

For the first time since 1982, investors have been willing to accept half a percentage point per year LESS on a 10-year fixed rate government bond than on a 2-year fixed. Some interpret this as a sign of recession, while others are more focused on what these deposit rates vs borrowing costs mean for an economy that has historically relied more on borrowing than on savings. Of most direct impact for traders, an inverted yield curve has rarely lasted long, so now may be an attractive time to put on trades that would profit from any eventual “normalization” of the yield curve, whether the overall level of rates goes up or down.

In this practical webinar, seasoned bond trader Tariq Dennison explains the yield curve in plain English, what its historical patterns have been through different economic conditions, and most importantly, simple trading strategies you can do in your Interactive Brokers account with instruments like the CME Micro Yield Futures.

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Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from CME Group and is being posted with its permission. The views expressed in this material are solely those of the author and/or CME Group and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Disclosure: Futures Trading

Futures are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading futures, please read the CFTC Risk Disclosure. A copy and additional information are available at ibkr.com.

Ready for the 80s? How to Trade the Deepest Yield Curve Inversion in 40 Years

Nov / 17 / 2022

6:00 pm - SGT

Disclosure: Interactive Brokers

Disclosure: Futures Trading

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