Are we nearing the end of the inverted yield curve?

investmentnews.com:

According to the latest InspereX Pulse Survey, a shift is underway in the investment landscape as financial advisors anticipate the end of the inverted yield curve. The survey, which polled 384 financial professionals, reveals a consensus among 62% of advisors who believe that rates on the 2-year U.S. Treasury have peaked. Furthermore, only 34% suggest a similar trend for the 10-year note, hinting at a potential resolution to the yield curve inversion.

“The rising rate environment has meant one thing for fixed income markets: bonds are back and once again at the forefront of the asset allocation discussion,” John Tolar, head of fixed income sales and trading at InspereX, said in a release. The firm experienced record-breaking sales in October and November, exceeding $12 billion in fixed-income notional value distributed. Notably, InterNotes, tailored corporate debt offerings for individual investors, showcased their best performance of the year in November.

The survey indicates that financial advisors are capitalizing on the higher-yielding fixed-income landscape, with 68% witnessing clients shift equity allocations into fixed income. Tolar further notes, “It’s refreshing to see advisors express optimism within fixed income markets moving forward, as they’re forecasting an end to the prolonged inversion of the yield curve.”

Moreover, the positive impact extends beyond reallocation, with 65% noting that higher rates have improved client conversations, and 61% stating that clients are eager to lock in higher rates for extended periods. Over half (52%) attribute increased business wins to the current rate environment.

However, advisors also exercise caution, with 59% expressing concern that investors may overlook potential