Friday, September 05, 2008

A negatively-sloped yield curve usually signals an economic slowdown. The following countries, according to the August 23rd edition of "The Economist" magazine, are in for trouble: Britain, the Euro area, Czech Republic, Turkey, Australia, Indonesia, Taiwan, Brazil, Chile, Columbia, Venezuela, Egypt and South Africa.

Brazil has the steepest inversion. It's three-month bill is 12.92% and its ten-year note is 6.16% in US dollar-denominated securities.

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