A legitimately inverted yield curve needs to remain in force for a lengthier period than a day or days before it truly indicates a coming recession, many economists say.
The bond market signaled a recession--again. For the second time in a week, the closely watched 2-year Treasury note TMUBMUSD02Y, +4.59% rate rose above its longer-term counterpart in the 10-year Treasury note TMUBMUSD10Y, +2.34%, representing an inversion of the bond-market yield curve. Yields inverted almost exactly a week ago and investors have grown increasingly anxious about the gauge, which has preceded the past seven recessions.
On top of that, the inversion needs to be deeper than a few basis points. And even if the yield curve inverted late Wednesday, it wouldn't be any more meaningful at pointing to an imminent recession than it was last week. From 1956, past recessions have started on average around 15 months after an inversion of the 2-year/10-year spread occurred, according to Bank of America Merrill Lynch.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
U.S. yield curve: Invert, steepen, repeatThe U.S. Treasury yield curve has once again inverted, sounding the alarm of a possible recession. onehitGit dives into the details for ReutersTV. More:
Leer más »
Bond market yield curve inverts, signaling Fed may be too slow to cut rates, risks recessionAfter the Fed released minutes of its last meeting, the bond market signaled it fears the Fed will not be aggressive enough with its rate cutting.
Leer más »
Fact-checking Peter Navarro's claims that the yield curve is not inverted Fact checking Peter Navarro's claims that the yield curve is not invertedOn Sunday, White House trade adviser Peter Navarro brushed off concerns of an impending recession. Navarro, known for his outside-the-mainstream positions on economic policy, told CNN's Jake Tapper that the yield curve was not 'technically' inverted last week.
Leer más »
LOL, North West Side-Eyeing Saint Is the Definition of Having a SiblingNorthWest has mastered the sibling side-eye in these hilarious photos with SaintWest and PsalmWest. 😂
Leer más »
WW's New Weight Loss App for Kids Is Exactly the Kind of Thing That Fueled My Bulimia'Children are not ‘little adults’ and the approaches that may ‘work’ for adults, such as weight-loss goals, are not appropriate for children most of the time.'
Leer más »
A 'recession dashboard' from Credit Suisse indicates the economy is nowhere near a recessionThe yield curve is the only economic indicator pointing to a recession, according to Credit Suisse.
Leer más »