Britain’s inverted yield curve is nothing like America’s

INVERTED yield curves are the hot topic of the summer, especially as UK gilts have followed US treasuries by offering more interest on two-year maturities than you’ll get on 10-year notes.

When the sovereign bond world is flipped on its head like this it’s often seen as an indicator of looming recession as investors scramble for the relative safety of longer-term debt, which in turn pushes down its yields. The phenomenon has been seen before the last seven recessions in the United States.