The spread between yields on the 10-year and 2-year Treasury note has been negative since July 2022. On 6/1/2023, the spread between yields on the 10-year Treasury note and 3-month Treasury bill touched as low as negative 1.89 percentage points. As of Tuesday 12/8/2023, the yield spread fell to negative 1.21 percentage points. Which of the following is NOT one of the interpretations of the term structure today? O The market anticipates economic recession to follow. O The bond market expects a strong and vibrant economy in one to two years forward, thanks to the Fed's successful monetary policy. O The yield curve has inverted, indicating that bond investors now demand a higher return from shorter-term bonds than from longer-term bonds. O The market expects future interest rates to fall.

The spread between yields on the 10-year and 2-year Treasury note has been negative since July 2022 . On 6/1/2023, the spread between yields on the 10-year Treasury note and 3-month Treasury bill touched as low as negative 1.89 percentage points. As of Tuesday 12/8/2023, the yield spread fell to negative 1.21 percentage points. Which of the following is NOT one of the interpretations of the term structure today? The market anticipates economic recession to follow. The bond market expects a strong and vibrant economy in one to two years forward, thanks to the Fed's successful monetary policy. The yield curve has inverted, indicating that bond investors now demand a higher return from shorter-term bonds than from longer-term bonds. The market expects future interest rates to fall