Did the yield curve invert in Japan?… Not so much

So the question has arisen as to whether the yield curve in Japan has inverted before its most recent recessions. And the answer is no…


Credit seeking alpha for this chart and Alan Thomson at Terra Firma Financial for digging it out. (JGB is Japanese government bonds.)

Before the last 3 recessions in Japan the yield curve flattened out a bit, but not close to a full inversion. It is very likely that the US will experience the same type of mild to moderate flattening out before its next recession.