The yield curve is sending increasing warnings that a recession is coming. While the three-month and ten-year yield has been inverted for months, a new inversion occurred yesterday, when the ten-year yield moved below the two-year yield. Even more eye-opening was that the 30-year bond yield fell to just 2.06%. That figure shows that investors have abandoned all fear of rising rates and all economic bullishness.
FINSUM: We don’t know whether to be more worried about a big correction in bonds, or that the economy may actually be as bad as bonds are suggesting! Either way things look bad.