Pakistan Economy: Dissecting the negative yield curve – By JS Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Pakistan&rsquo;s yield curve, which was upward sloping till Oct-2021, turned flattish by Apr-2022, moving towards an inversion since then, widening the most in at least two decades. While inverted yield curves are relatively short-lived, the last time Pakistan witnessed the same lasted for nine months, in 2019-2020.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">This is not a different phenomenon when compared to other countries owing to global inflation pressures and recession fears. At present, more than 15 countries have an inverted yield curve, out of which most are A or higher rated countries by S&amp;P.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:...