The bond market could soon send its loudest recession warning yet, if the closely watched 10-year yield falls below the 2-year note yield.
The Treasury yield curve has been warning about a recession, but strategists say it's about to send an even louder and stronger message, as the 10-year yield looks set to fall below the 2-year note yield.
"It's the whole idea that the Fed is making a mistake. There's more fear that the Fed is going to be slow in making moves, and the economy is going to to into recession," said one strategist.As Wall Street economists up the odds for a recession in the coming year, the bond market is sending its own scary warning about an economic downturn.
The 10-year yield, at its low yield of 1.64% Monday came less than 6 basis points above the 2-year yield, which was at 1.58% in afternoon trading. The spread broke below 10 basis points last week. An inverted curve simply means a shorter-term interest rate is higher than the longer-term one that it is being compared too, and that inversion has been a reliable recession signal.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Making His Directorial Debut Casey Affleck Explores The Ferocious Bond of Parent And ChildCasey Affleck wrote, directed, produced and stars in the new film Light Of My Life.
Leer más »
Investors Ponder Negative Bond Yields in the U.S.A steep slide in U.S. government-bond yields last week wrong-footed investors and left some pondering what was once unthinkable: whether interest rates in America could one day turn negative.
Leer más »
Twitter Data Shows Major Increase in Gaming Engagement on Platform (Exclusive)Tweets focusing on the gaming industry are on track for their biggest year yet.
Leer más »
Investors who fear recession will miss out on record market gains, long-time bull Ed Yardeni predictsYardeni Research's Edward Yardeni doesn't believe falling Treasury yields will derail the bull market.
Leer más »
Childish Gambino's Headlining Set Drew Outside Lands' Biggest Crowd YetChildish Gambino could barely contain the news: shortly before he took the stage for his headlining set at Outside Lands on Saturday night (Aug. 10), he was informed that his performance marked an important milestone for the festival -- and he blurted that stat as soon as he could.
Leer más »
Giddy Up! See the Kardashians Take Wyoming in New KUWTK Sneak PeekKris Jenner brought the family to Jackson Hole for a 'reset' on KUWTK: 'Things are a little bit off.'
Leer más »