Market's Favorite Recession Indicator Lurches Lower in New Year
- Gap between 3-month and 10-year Treasury yields has plunged
- Fed chief Powell’s job has become ‘that much harder’: BMO
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Traders return to their desks in the new year with a familiar warning signal flashing even more strongly than before -- the Treasury yield curve got even flatter, feeding the market’s worst suspicions about the U.S. economy.
Market watchers noted a dramatic compression in what is arguably the most reliable indicator of recession -- the gap between the 3-month and 10-year Treasury yields.