Economics
Now Inverted Yield Curves Are Coming to Emerging Markets, Too
- Brazil, Mexico curves inverted amid sluggish growth, Fed bets
- Philippines joins group that also includes Turkey, Argentina
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The canary in the bond market is adding to evidence recession may be coming to the developing world.
In Brazil, Mexico and the Philippines, longer-term rates have fallen below their short-term counterparts, creating inverted yield curves that are often interpreted as a harbinger of recession. Curves have also flattened in South Korea, and have long been inverted in troubled Argentina and Turkey.