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World’s recession may stunt Trump’s economic growth – Bonds went into inverted yield last Friday, a sign of gathering storm-clouds!

GS: Bond Traders Treasury Notes 071031
“Traders signal offers in the Ten-Year Treasury Note Options pit at the Chicago Board of Trade.”
Scott Olson | | Getty Images

“Bonds are flashing a huge recession signal — here’s what happened to stocks last time it happened”

Key Points

  • Stocks rise about 15 percent on average in the 18 months following inversions, according to Credit Suisse.
  • The spread between the 3-month Treasury bill and the 10-year note went into negative territory on Friday, the first time since 2007.
  • The more widely watched part of the curve — the gap between yields on the 2-year and 10-year debt — falls to just 10 basis points, versus 60 basis points a year ago. By Yun Li, CNBC. Read more

“Dow drops more than 450 points; S&P 500 posts worst day since January on worries over economy”

“Stocks dropped on Friday [March 22] as investors worried global economic growth could slow down following the Federal Reserve’s cautious outlook from earlier in the week and weak overseas data.

“The Dow Jones Industrial Average closed 459 points lower as bank stocks fell on an inverted yield curve, which some investors see as a signal of a recession coming. The S&P 500 fell 1.9 percent and notched its biggest one-day drop since Jan. 3. The Nasdaq Composite declined 2.5 percent as shares of Facebook, Amazon, Netflix, Alphabet and Apple all closed lower,” quoting Fred Imbert, CNBC. Read more

Posted by Steve on March 24, 2019 at 12:01 am | Permalink

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