An Inverted Market

AgriSompo North America market analyst Sterling Smith says interest rates have been climbing and are inverted. “Right now, you can get 5.37 percent overnight if you want to lend the government money and for ten years, you’ll get 4.47 percent. That’s 100 basis points of inversion. That’s abnormal. For it to be normal, we should see these ten-year rates trading at least 60 basis points above overnight which is six percent.” Smith says the inverted interest rate is a sign of recession.