Chile’s yield curve is more important

Forget the U.S. yield curve, I’m watching the Chilean one.

When the Chilean yield curve inverts, an equities advance is stifled.

It hasn’t yet but it’s making its way there.

In the interim, this move towards zero percent should pause mainly because weekly streaks exhaust themselves.

The yield of the Chilean 2’s have risen for 9 consecutive weeks.

The 10 year yield has fallen for 7 straight weeks.

Inversely, while the streaks take a break, ‘risk’ could rip a little more.

by Rob Zdravevski

August 15, 2024

rob@karriasset.com.au