The yield on the benchmark 10-year Treasury note broke below the 2-year rate, an odd bond market phenomenon that has been a reliable indicator for economic recessions.
The yield on the benchmark 10-year Treasury note on Wednesday broke below the 2-year rate, an odd bond market phenomenon. The move shows increasing worries about the global economy as investors rush into safe haven assets.
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.” Investors often give the spread between the 10-year and the 2-year special attention because inversions of that part of the curve have preceded every recession over the past 50 years, albeit even years before an economic downturn hit.
Central banks around the world, including the Federal Reserve, have pivoted once again to easing policies. Major government debt in countries like Germany now have negative yields. “The U.S. equity market is on borrowed time after the yield curve inverts. However, after an initial post-inversion dip, the S&P 500 can rally meaningfully prior to a bigger recession-related drawdown,” wrote Bank of America technical strategist Stephen Suttmeier.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
U.S. Treasury bond curve inverts for first time since 2007 in recession warningThe U.S. Treasury bond yield curve inverted on Wednesday for the first time sinc...
Consulte Mais informação »
Bond markets send recession warning signal as yield curve invertsCNBC's steveliesman breaks down why investors are concerned about falling yields and what it may, or may not, mean for the economy. 'No one knows if inversion means the same thing today as it did a decade ago,' he says.
Consulte Mais informação »
US 30-year bond yield falls to record low, threatens to break below 2%The benchmark 30-year Treasury bond yield plunged to a new record low as a global hunt for safe assets threatened to send the rate below 2%.
Consulte Mais informação »
Rare 'James Bond' Rolex up for auctionA rare Rolex made famous by Sean Connery in the very first James Bond movie, 'Dr. No,' is set to go under the hammer Wednesday.
Consulte Mais informação »
Bond market close to sending biggest recession signal yetThe bond market could soon send its loudest recession warning yet, if the closely watched 10-year yield falls below the 2-year note yield.
Consulte Mais informação »
Dow drops 390 points and slips back below 26,000 as bond yields declineAll 3 major U.S. indices fell today as bond yields continued to spiral lower, raising concerns about the broader state of the economy. The Dow tumbled 1.51% as the S&P fell 1.24% and the Nasdaq dropped 1.20%.
Consulte Mais informação »