Main yield curve inverts as 2-year yield tops 10-year rate, triggering recession warning

The yield on the benchmark 10-year Treasury note on Wednesday broke below the 2-year rate, an odd bond market phenomenon that has been a reliable, albeit early, indicator for economic recessions. The yield on U.S. 30-year bond fell to a new all-time low, dropping past its prior record notched in summer 2016.Early Wednesday, the yield on the benchmark

Investors are now demanding higher interest rates on short-term debt than they are longer term debt, a phenomena known as an "inverted yield curve." Economists often give thespecial attention because inversions of that part of the curve have preceded every recession over the past 50 years. It's not until about 18 months after an inversion when the stock market usually turns and posts negative returns.

"This is a track record any economist would be proud of," said Sohn. "If the inversion started today, the economy could be in a recession within a year."

steveliesman Agree that POTUS lost the Trade War?

steveliesman I would say this news shows exactly the destruction this chaotic president of United States has calls I am pretty sure Russia appreciates him.

steveliesman

steveliesman I call 'shenanigans.' They've been saying this... for a while. 🙄 The situation is, the rest of the world is dumping their cash in our bond market because yields are negative in so much of the world. So, bond issuers (borrowers) can pay less in yield because demand is so high.

steveliesman Is everyone still winning?

steveliesman Move into stocks

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