Thursday, August 15, 2019

Bond Market Not Signaling Recession, Say Experts

 Traders work after the opening bell at the New York Stock Exchange at Wall Street in New York City, on Aug. 15, 2019. (JOHANNES EISELE/AFP/Getty Images)

Despite good US economy, markets expect a more aggressive move by the Fed if global weakness and trade concerns persist

 U.S. stocks dropped sharply on Aug. 14, as the bond markets signaled concerns about a possible recession with the yield curve inverting for the first time in 12 years. The inverted yield curve, however, isn’t an indicator of recession in the current market environment, according to experts.

Investors pushed the panic button after the main yield curve briefly inverted, meaning the yield on the closely watched 10-year U.S. Treasury bond fell below the yield on the two-year note for the first time since 2007.

2 comments:

  1. 23 TRILLION OF DEBT, adding a TRILLION a year to that debt, personal debt at historic levels, coupled with ship loads of printed money can "buy" prosperity for a time. There's just going to be hell to pay when the bill comes due.

    And buy the way, who the hell ever heard of "negative interest" bonds? I mean nothing says free and healthy market like "negative interest", right?

    Y'all have a nice day.

    ReplyDelete
    Replies
    1. nothing says free and healthy market like "negative interest", right?

      Ha! :)

      Delete