The Flat Yield Curve Is Flagging a Strong U.S. Economy

Given all the attention it has gotten in recent months, most everyone seems to know that the bond market’s yield curve is dangerously close to inverting, an event that has reliably predicted U.S. recessions in the past. The recent firming of economic growth, however, is a reminder that the shrinking difference between short- and long-term Treasury yields by itself does not indicate economic weakness ahead.

Continued at Bloomberg Opinion…