U.K. Experience Suggests an Inverted Yield Curve Isn’t All Gloom and Doom

This article states how the inverted yield curve may not be as bad as it seems based off of the U.K. economic history. During the mid and late 1980s recessions hit elsewhere including Russia and the U.S. but the economy in the U.K. remained strong. In 2001, external forces such as foreign central banks cutting rates, sending their bond yields down made investors look to the U.K. where rates were higher. Their buying weighed in on gilt yields which inverted the yield curve. These trends are starting to be seen in the United States. With yields in Europe already in record low or even negative territory before the recession hits, investors may be buying U.S. treasurys for their better returns because European bonds can no longer act as a hedge against falling equity prices.

https://www.wsj.com/articles/u-k-experience-suggests-an-inverted-yield-curve-isnt-all-gloom-and-doom-11569762002