EDITOR'S NOTE

The days were dark and filled with ominous warnings about the economy and the stock market.

It was only a few months ago when the dreaded recessionary sign known as the inverted yield curve emerged. This happens when yields on short-term Treasurys are unnaturally lower than longer-term notes.

CNBC's Yun Li writes that the spread between two-year and 10-year Treasurys is now at the highest level since November 2018. This steepening of the yield curve may prove to be as good a sign as the inverting of the yield curve was considered bad.

“The Fed is on hold, the economy is doing well, and trade tensions aren’t increasing," Ian Lyngen, BMO’s head of U.S. rates, said Wednesday. "In such a world, a steeper curve follows intuitively."
 

Many economists and market observers see no recession in sight. It's been an amazing decade.

Much of the nearly 11-year bull run in stocks has come in large part because of the Fed's ultra-low interest rate policies. CNBC's Matthew Belvedere writes about one investor who saw this coming, David Tepper, founder of Appaloosa Management.

"Stocks are going to do well," Tepper said in 2010. "Bonds won’t do so well, gold won’t do as well.”

Boy, was he right.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

TOP NEWS 

TOP VIDEO

CNBC PRO

SPECIAL REPORTS