The bond market smells recession as global stress rises
August 15, 2019
NEW YORK (AP) — Compared to the free-swinging and sometimes emotional stock market, the bond market is supposed to be the sober and measured one.
It's getting more alarmed.
Bonds sounded their loudest warning bell yet of recession on Wednesday, when the yield on the 10-year Treasury briefly fell below the two-year yield. Such a thing is rare: Investors usually demand more in interest for tying up their money in longer-term debt. When yields get "inverted," market watchers say a recession may be a year or two away.
An inverted yield curve has historically been a reliable, though not perfec...